Businessman faces €89.9m demand

AN €89.9 million summary judgment order entered against a Laois businessman in favour of Anglo Irish Bank is believed to be the largest judgment against an individual by the Commercial Court.

The order arose from loans advanced by Anglo from 2006 and into 2009 to companies controlled by Thomas Keane and associated with the Killenard and Heritage Hotels and Golf Club in Co Laois.

Anglo had in June last appointed joint receivers over the assets of the defendant, mainly properties, which were secured in favour of the bank.

The judgment, entered in the case of Mr Keane, Corrigeen, Stradbally, Co Laois, was among 33 new cases in the court’s list dealing with claims of up to €300m, mostly over unpaid loans to banks and other financial institutions.

Mr Keane was not in court for the brief hearing but solicitors acting for him had in earlier correspondence indicated he was not opposing the judgment order.

After hearing from James Doherty, for Anglo, Mr Justice Peter Kelly said he was taking from the correspondence that Mr Keane accepted the amount sought was owed.

The judge then entered judgment for the total sum, plus interest, of €89,937,870m, plus costs to the bank.

The proceedings arose from loans to various companies, including a €24.3m loan facility of January 2008 to T.K. Contract Systems Ltd, secured by the guarantee of Mr Keane. Loans of €21.6m were also advanced to Corrigeen Construction Company Ltd in September 2008 and on various dates in 2009, also guaranteed by Mr Keane.

A further €17.2m loan was advanced in January 2008 to another company, Kea-Lwe Ltd with Mr Keane also providing a guarantee over that sum.

In November 2009, the bank made a further loan of €10.8m to Killenard Golf Company Ltd, again secured by a guarantee of Mr Keane.

The bank demanded repayment of the various loans in June 2010 and when no repayment was made, brought proceedings against Mr Keane.

In another case yesterday, a Co Limerick businessman, Michael Murphy Snr, Elsinore, Castletroy, consented to judgment of more than €29.1m against him arising from loans advanced to a number of partnerships to buy and develop property.

A second businessman, Liam McArdle, of Castle Mungret, Co Limerick, consented to judgment for €7.1m in relation to some of the loans.

AIB has also sought summary judgment orders for €29.1m each against Margaret Murphy, wife of Mr Murphy, and the couple’s three adult children – Michael Murphy jnr, Gail Fitzgerald (nee Murphy) and Thomas Murphy over various unpaid loans.