The High Court has today made a €2m judgement against Independent TD Mick Wallace in respect of an Ulster Bank loan granted in 2009 and assigned to an Irish subsidiary of US investment firm Cerberus.
The construction company M&J Wallace was set up by Mick Wallace’s father in 1970, but is now in the hands of a receiver.
In June 2009, it received a €2m loan from Ulster Bank. The loan was later assigned to Promontoria (Aran) Limited, which is a subsidiary of Cerberus – the US investment firm which Deputy Wallace referred to during allegations made in the Dáil in relation to their purchase of a Northern Ireland loan portfolio from NAMA.
The loan was recalled on foot of a guarantee made by the Wexford TD, and the company sought a summary judgement against him earlier this week.
Deputy Wallace argued the assignment to Promontoria was not valid, and claimed it was too early to make the judgement because he could still reduce his indebtedness when the receiver sells a property on Ormond Quay in Dublin.
However, Mr Justice Brian McGovern disagreed and decided that it was entitled to summary judgement before putting a three-month stay on its execution.