Banks seek orders for €150m in loans

A SERIES of new and separate claims by various banks seeking judgment orders for more than €150 million over unpaid loans, the vast majority property related, came before the Commercial Court yesterday.

The largest of the claims was by Bank of Ireland for €63m against four Cork businessmen, while the second largest was by Irish Nationwide Building Society for €35m against a Limerick developer, Gerard Clohessy.

Mr Justice Peter Kelly made summary judgment orders totalling more than €60m in a series of cases in circumstances where no defence was offered to those claims. The unopposed claims included the INBS case against Mr Clohessy, Mount Shannon Road, Annacotty, Lisnagry, Co Limerick, arising from six loan accounts operated by him with the society. INBS claimed the total amount owed under the various acounts, plus interest, was €34.57m.

The society said the loan arrangements were principally connected with the Evanwood development being carried out by Mr Clohessy at Golf Links Road, Castletroy, Limerick, the Drominbeg Housing Estate development at Rhebogue, Co Limerick and the purchase of other investment properties at Rhebogue.

The society said it learned last November for the first time judgment mortgages had been registered against Mr Clohessy’s property interests which were not notified to it, constituting a major event of default of the conditions of the loan facilities.

In March 2010, it issued letters of demand and also appointed a receiver over several properties. Mr Clohessy entered no appearance or defence to the claims and in those circumstances summary judgment was entered.

Mr Justice Kelly adjourned to Friday Bank of Ireland’s application for summary judgment orders for about €63m against Michael Conway Snr, Maglin House, Carriganarra, Ballincollig, Co Cork; Michael Conway Jnr, Lake View, Faha, Dripsey, Co Cork; Kieran Conway, Burkes Hill, Tivoli, Cork; and Paudie Dennehy, Seaview, Ballinaskulla, Myrtleville, Co Cork.

The bank claims €24.3m is owed under loans advanced to the defendants, trading together as the Conway Partnership, while another €38.5m is due under guarantees allegedly provided by them over the liabilities of Rumex Ltd and Daphne Investments Ltd, trading as the Dee Partnership.

In response to issues raised by Hugh O’Keeffe, for the defendants, John Hennessy, for BOI, said the receiver had not sold any of the properties and none of the issues raised amounted to a defence. Mr Justice Kelly will rule on Friday whether to send the matter to plenary hearing or enter judgment for the sums sought.

ACC Bank also yesterday secured, on consent, summary judgment for €8.3m against Co Galway businessmen Denis O’Connell and Brendan Quirke, both of Corbally, Cummer, Tuam.

He also granted summary judgment for €3.2m against two Co Galway builders who represented themselves. Martin Fox, Moyvilla, Ornamore, and Gareth Duffy, Ballina, Ballyglunin, Tuam, said they believed their indebtedness would have been considerably smaller had the bank allowed them a reasonable opportunity to try and sell properties.

Summary judgment for €4m was also entered in favour of ACC against Carol Macken, a creche operator, of Carrickbrack Lawn, Sutton, over unpaid loans.

Bank of Scotland Ireland also secured summary judgment for about €1.5m against Donal Rigney and his company Donal Rigney Ltd, of Mountpleasant, Bluebell, Tullamore.