Bank secures €22.5m judgment order against businessman

BANK of Ireland has secured a €22.5 million summary judgment order on consent against a Dublin businessman over unpaid property loans.

The bank told Mr Justice Peter Kelly yesterday it also intends to seek similar orders shortly over the same loans against Smart Telecom purchaser Brendan Murtagh and two Cork businessmen, one of whom, Greg Coughlan, is the subject of an arrest warrant over his failure to obey court orders in proceedings over other unpaid loans.

The proceedings arise over a July 2006 €22.6m loan facility to four defendants – Frank Gormley, Maple Road, Clonskeagh, Dublin; Brian Madden, Well Road, Douglas, Cork; Greg Coughlan, Fastnet House, The High Road, Kinsale, Cork; and Mr Murtagh, Dunheeda, Kingscourt, Co Cavan.

Most of the monies were advanced to refinance previous loans advanced by the bank to purchase 17 apartments – 10 at Copley Hall, Cotter Street, Cork, and seven at Estuary Court, Rochestown Road, Cork – plus eight car parking spaces in Cork city and two commercial units at Fingal Bay Business Park, Balbriggan. Some €5.7m was also advanced for equity release.

The facility was secured by mortgages over the properties and a first legal charge over other properties referred to as the “UK properties”. The bank claimed the facility was repayable in full on or before June 30, 2009. Demand for payment was issued in July 2010.

Yesterday, Mr Justice Kelly was told Mr Gormley was consenting to an order for summary judgment for €22.5m against him and the judge made that order.

Counsel for the bank said it had been unable to serve Mr Coughlan who might be in Spain.

Mr Justice Kelly noted a warrant had been issued previously for the arrest of Mr Coughlan.

The warrant was issued last April in other proceedings brought by Loparco SA, a Luxembourg registered company through which investors provided €20m for Polish property deals, to be managed by the Howard Holdings property group. Loparco secured judgment last January for €28.1m against Mr Murtagh, Mr Coughlan and Mr Madden.

To date, the three men have had total judgments for more than €60m entered against them in the Commercial Court.