Anglo Irish Bank sues Limerick developer for €21m arising from guarantees

ANGLO Irish Bank is suing a Limerick developer for €21.3 million arising from loans and guarantees provided by him and others.

The action is against Richard Dineen, Fanningstown, Fedamore, Co Limerick. In the same proceedings, the bank is also suing developer John Egan for €1.7m.

The proceedings against Mr Dineen; Mr Egan, Knockalisheen, Spur Hill, Togher,Co Cork; and their company Dineen & Egan Developments, of the same address at Knockalisheen, were admitted to the Commercial Court yesterday by Mr Justice Peter Kelly.

Andrew Walker, for Mr Dineen, said his client will argue the agreement related to the main loan in the case, for some €19m, and was not honoured by the bank.

The rationale for that loan was to allow Mr Egan to be extricated from the deals between the sides, counsel said.

When the bank in December last appointed a receiver over properties, Mr Dineen did not believe he would also face a judgment application, counsel said. His client believed better rents could be achieved for the properties.

Mr Egan was contending he should be released from all liability, the court also heard.

The bank alleges Mr Dineen and Mr Egan traded in partnership and on their own account at all material times.

It also claims both men are principals and shareholders of the defendant company and provided guarantees to Anglo over loans made to that company.

The claim against Mr Dineen arises mainly from a credit advance facility agreement of January 2009 under which the bank agreed to make available to him credit of some €21.3m. It claims some €18.9m is owed under that facility while a further €607,600 is due under a Swap Transaction Agreement.

The bank claims Mr Dineen also provided a written guarantee in June 2007 guaranteeing all liability of Mr Egan under a credit advance facility, and some €131,270 is owed under that.

In its claim against Mr Egan, Anglo alleges he owes some €131,270 under the credit advance facility.

It further claims Mr Egan has joint liability with Mr Dineen for some €1.14m due under another credit facility.

The claim against the defendants related to their personal guarantees of the liabilities of the defendant company under a credit advance facility to buy warehouses in Portlaoise is for some €433,169.

* In separate, unrelated proceedings yesterday, Anglo secured €5m judgment orders on consent against three Co Kerry businessmen.

Counsel for Kevin Reddan, Fadden House, Station Road, Glenbeigh; James Riordan, Ballinakilla Upper, Glenbeigh; and Morgan Sheahan, Ballinakilla, Glenbeigh, all consented to judgment for €5m arising from their guarantee of February 14, 2007, of a €4.5m loan to Foilmore Quarries.

The proceedings were brought after the company defaulted on repayment.