Developer John Flynn is unlikely to recover any money from IBRC following his case alleging that he had been overcharged on €150m worth of loans from the former Anglo Irish Bank.
Finance Minister Micheal Noonan said in response to a parliamentary question that no matter what the outcome of the case, Mr Flynn would only have the status of an unsecured creditor in the IBRC liquidation.
Mr Noonan said in response to a question from Sinn Féin’s Pádraig Mac Lochlainn that it was unlikely Mr Flynn would recover his damages.
Mr Noonan said: “I have been advised by the special liquidators that in the Republic of Ireland, any claims made in relation to the potential overcharging of interest would likely rank as unsecured creditors in the liquidation.”
Mr Flynn has claimed that IBRC, which was then trading as Anglo Irish Bank, deliberately altered interest rates on loans resulting in an excess charge of €8m.
The Sunday Independent reported that it had seen court documents that showed IBRC continued this overcharging scheme, as did Nama on loans it acquired, it is alleged.
Mr Flynn is taking the case along with other members of his family including brother Jimmy, founder of the Blackrock Clinic, and companies associated with both Mr Flynn and developer Paddy Kelly.
The case claims that Anglo coerced and threatened the Flynns in an “ongoing scheme to defraud plaintiffs”. The bank prevented the Flynns from entering into agreements with other banks that would have provided them with better terms, it is claimed.
It is alleged that “negligent misrepresentations and omissions” led Mr Flynn and the other parties to purchase over 83 loans and that Anglo “swelled its profits by the incorrect and fraudulent charging of arrangement fees and arbitrarily increasing margins on the borrowers’ loans”.
Mr Flynn has since moved his place of residence to Florida.
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