Emails to Lynch family stated bank only wanted recourse to land, court hears

EMAILS sent by solicitors with the LK Shields law firm to the family of businessman Philip Lynch just hours before they signed up to a €25 million loan to buy development lands with developer Gerry Conlan stated Allied Irish Bank only wanted recourse to the land, not the family, the Commercial Court has heard.

A partner with LK Shields, Emmet Scully, said yesterday the emails sent by other solicitors with his firm were based on information given to them by Ronan McLoughlin, a partner in Matheson Ormsby Prentice solicitors.

In his evidence, Mr McLoughlin denied he provided information to LK Shields which could have led to the Lynch family being informed the loans were non-recourse. The information he passed on came from AIB and was to the effect the bank, on advice of its solicitors, had deleted a condition in a draft loan facility letter which provided for recourse to Philip Lynch and developer Gerry Conlan for the €25m, he said.