Property tycoon Robert Tchenguiz could see his £20 million Hyde Park townhouse being handed over to receivers in a legal dispute stemming from the Icelandic banking crisis.
Tchenguiz, who lives with his 27-year-old girlfriend Julia Dybowska on the fourth floor of the property, with his wife Heather Bird and children downstairs, was one of the West End’s biggest landlords in the 1980s.
Tchenguiz and his brother Vincent once had a portfolio of more than 600 buildings said to have been worth £4.5 billion, although much of their capital was borrowed.
His fortune was badly hit by the Icelandic banking crisis, in which he is said to have lost more than £1.5 billion, according to the Daily Mail.
The property could now be seized by accountancy firm Grant Thornton, which is attempting to recoup money lent out by Icelandic bank Kaupthing before the crash.
Kaupthing collapsed during the financial crisis of 2008 and had allowed Tchenguiz to borrow £1.6 billion before it went bust.
In 2014, liquidators successfully gained an order from the Royal Court of Guernsey allowing them to take assets from him, including his house. But the fallout was put on hold pending another judgement.
“This is a welcome outcome for the creditors of the trust, including Kaupthing,” a spokesperson for Grant Thornton said.
Judges in Guernsey have now ruled that Grant Thornton can enforce a judgment of in excess of £140 million against assets held in the Tchenguiz Discretionary Trust.
Tchenguiz told The Times he is planning to appeal the judgement in the European Court of Human Rights.