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Nathaniel Rothschild filed a lawsuit against financier Lars Windhorst less than six months after the scion of the banking dynasty agreed to become chairman of the German businessman’s investment firm.
Lord Rothschild sued Windhorst and Tennor International, his Swiss investment arm, at London’s High Court on Wednesday, according to court filings. Nathaniel Rothschild inherited the British title when his father Jacob, the fourth Baron Rothschild, died last year.
Court filings show the lawsuit relates to a contract dispute, and further details are not publicly available. However, a Rothschild spokesman told the Financial Times that it was linked to an alleged debt default.
“This relates to a separate matter distinct from Lord Rothschild’s investment in Tennor, whereby he personally granted a short-term loan to Mr Windhorst, who is now in default,” a Rothschild spokesman said. “He is disappointed that he has to start this process.”
Windhorst declined to comment on the lawsuit, which was first reported by Bloomberg.
Windhorstthe scandal-prone German financier, known for his lavish lifestyle and history of legal troubles, successfully wooed Rothschild to become his new business partner last year.
During a party at Windhorst’s offices in Mayfair in July, Rothschild announced that he will take a minority stake in the financial investment company Tennor and become its executive chairman.
“I will devote all my time to this effort,” Rothschild said at the time. “I’ve never seen anyone work as hard as Lars, it’s pretty remarkable.”
In an interview for FT last month, Windhorst said: “I am very pleased, and actually excited, to have Lord Rothschild with us.”
Windhorst rose to fame as a teenager in the 1990s, when Helmut Kohl, the German chancellor at the time, called him a business prodigy.
However, his business career was marred by legal disputes and the failure of several ventures. In recent years, several creditors have sought repayment through the High Court in London.
His Dutch investment company Tennor Holding has also faced several bankruptcy petitions in the Netherlands, with the group’s former general counsel Peter Calamari filing a new application last month. Calamari did not respond to a request for comment.
Tennor Holding’s German shipbuilding firm also filed for insolvency last month, putting 500 jobs at risk.
Since Tennor Holding is facing creditors’ claims, Windhorst has mostly done new business through Tennor International in recent years.
