NIB sues three company directors for €13m

National Irish Bank has sued three company directors for more than €13 million over unpaid loans advanced to a company, including a loan to buy a roll-on, roll-off ferry.

The proceedings were brought against Hugh Noel (also known as Noel) Hanley, Kilfarrassy, Tramore, Co Waterford; Renee Hanley, Rockwood Drive, Grange Manor, Co Waterford; and Deirdre Harrington-Hanley, Brighton Hall, Foxrock, Dublin.

All three were described as directors at various times of Fencore Services, formerly Fencore Aviation Services, which is now in liquidation.

The bank claimed, under guarantees provided by the directors in relation to loans provided to Fencore, some €5.87m is owed by Noel Hanley, €4.79m by Renee Hanley and €2.52m by Deirdre Harrington-Hanley.

Yesterday, Mr Justice Peter Kelly transferred the proceedings against Noel and Deirdre Harrington-Hanley to the Commercial Court and adjourned it to enable them outline a defence.

The bank claimed it had advanced various loans to Fencore, including a €2.5m loan of 2006 to buy a Ro-Ro ferry, the MV Chong Ming Dao, later renamed the MV Kilmore.

It is also alleged the bank in 2007 also advanced a further €3m to restructure existing borrowings and in October 2008 advanced another €2.25m.

It is claimed a number of guarantees were provided by the defendants related to the loans.

The bank claims it demanded repayment from Fencore of various sums in September 2009 but it failed to repay the sums due.

Fencore was wound up by a High Court order in February last. The bank also demanded payment under the guarantees.