ACC registers judgments against properties in effort to secure repayment of developer loans

ACC Bank has registered judgments against a large number of properties, including Dublin’s exclusive Shrewsbury and Ailesbury Road, in an effort to secure repayment of loans made to developers Larry O’Mahony and Thomas McFeely.

The bank had last July secured summary judgment orders for some €6.2 million against Mr O’Mahony and Mr McFeely over non-repayment of a commercial development loan issued in April 2005.

Mr Justice Peter Kelly granted summary judgment after finding Mr McFeely, Ailesbury Road, Ballsbridge, Dublin, and Mr O’Mahony, Shrewsbury Road, Ballsbridge, had no arguable defence to the bank’s claim. The bank has since sought statements of affairs from both men and John Gleeson SC, for ACC, told the judge yesterday those statements had been received last week. His side had a number of queries about these and wanted time to consider the statements.

In those circumstances, the judge adjourned the proceedings on consent to allow the bank consider the statements. It will indicate later whether or not it wishes to cross-examine the defendants about their statements.

The judge noted ACC has registered judgment mortgages against 19 properties of the defendants, including two properties and a site at Shrewsbury Road, another property at Ailesbury Road, a property at Rathgar Road, Dublin, a property at Temple Road, Dartry, Dublin, ground known as The Plaza, Tallaght, properties at Thomas Street, Holles Street and North King Street, Dublin, and premises at East Douglas, Carrigaline, Co Cork, Quay Street, Dundalk, Co Louth, and at Bray, Co Wicklow.

The summary judgment application arose after ACC granted the April 2005 loan to repay a €4m loan to Ulster Bank and to make some €1.89m available for further development.

The loan was secured on an apartment development at Blakestown Road, Mulhuddart, 38 acres owned by Mr O’Mahony at Dunboyne, Co Meath, an assignment of rental income from the Mulhuddart apartments and €500,000 in a deposit account.

The bank moved in March 2009 to call in the loan after repayment arrears of more than €600,000 accumulated on it.

Both developers had argued the loan was a 20-year facility and they claimed the arrears would be tackled through insurance monies due following a fire at the Mulhuddart premises.

The developers also argued they had a defence in the form of proposals to address the arrears, including to find a new tenant for the Mulhuddart apartments.

They also alleged their problems were exacerbated through the bank refusing to agree refinancing arrangements.