THE Duchess of York faced further financial humiliation yesterday following the revelation that she is being sued for Pounds 100,000 sterling at the High Court in London, writes Rachel Borrill from London.
Although Buckingham Palace stressed again that the Duchess of York's financial problems were "solely a matter for her", if is understood that this would be the first time a member of the royal family has been sued over an outstanding debt.
The writ, filed late on Thursday night, was issued by Mrs Lily Rathan Mahtani, a society hostess and former friend of the duchess of York, who is said to have lent her Pounds 100,000 in the summer of 1994 for a holiday in the south of France.
According to friends of the duchess, who is rumoured to be Pounds 3 million in debt, she believed the money was a "gift". However, Mrs Mahtani claims the duchess had promised to repay the money after a reasonable period", but, when she requested the loan to be settled last February, the duchess only repaid Pounds 5,000.
Mrs Mahtani has instructed her lawyers to recover the outstanding balance, interest and legal costs. The duchess will have 14 days to either pay or pledge her intention to contest the writ. If she fails to respond, Mrs Mahtani may proceed with the action which could result in bailiffs being sent to seize goods to the value of the debt from Kingsbourne, the duchess' rented mansion.
A spokesman for the Duchess of York refused to discuss her financial problems.
The report comes as a further blow for the duchess after publicity over her debts appeared to have calmed down. Her office announced last weekend she had reached an agreement with US business executives who had bought the rights to future earnings from her Budgie The Helicopter books.