Businessmen ‘liable’ for unpaid loans of €8m to Zurich Bank

ZURICH Bank has secured an €8.15 million summary judgment orders at the Commercial Court against five people over unpaid loans issued in 2007 to buy properties in Bantry, Co Cork. The combined value of those properties in late 2009 was €2.5m.

Ms Justice Mary Finlay Geoghegan yesterday rejected arguments by the defendants that the true nature of the loan agreement involved the bank having no recourse to the defendants personally and its recourse was limited to the properties.

It was “beyond argument” the express written terms of the facility letter of December 6, 2007, as varied by another letter of January 21, 2009, made the defendants personally liable for repayment of the principal and interest on the loan, she said. Both those letters were accepted in writing by the defendants after legal advice, she noted.