Anglo pursues businessman for €19.4m

ANGLO Irish Bank is seeking summary judgment orders for more than €19.4 million against businessman Johnny Moran over his guarantees of loans made to companies which operated a pub and hotel in Dublin city.

Mr Moran, Herbert Lodge, Merrion Road, Ballsbridge, Dublin, is opposing the bank’s application which has been fixed by Mr Justice Peter Kelly for hearing at the Commercial Court next month.

The case relates to guarantees provided by Mr Moran over loans to two of his companies operating the Blarney Inn pub on Nassau Street and the Earl of Kildare Hotel, Kildare Street.

In separate proceedings, various companies of Mr Moran are challenging the appointment by Anglo of receivers over those and other premises held by the companies, including the Holiday Inn hotel, Pearse Street, Dublin.

The bank yesterday secured an order for that case to be also fast-tracked in the Commercial Court and the judge has made directions for exchange of legal documents between the sides. Paul Gallagher SC, for Anglo, said the receivers wanted to sell the Holiday Inn and the existence of the proceedings was impeding that sale and the sale of other properties.

Earlier yesterday, Ross Maguire SC, for Mr Moran, strongly opposed the €19.4m summary judgment application being fast-tracked on grounds including alleged delay by the bank in bringing the proceedings.

Counsel also argued there was an “inequality of arms” between the sides as the bank was represented by two senior counsel and one of the top law firms in Ireland. The case was really about a debt collection exercise and it was never intended that the Commercial Court would be used as a forum for debt collecting by banks, he said.

If the case was transferred, his side would be advancing a defence on grounds including alleged overcharging of interest and Anglo’s insolvency at material times. Anglo had acted in such a way as to frustrate his client’s ability to repay or refinance its loans and was not entitled to judgment, counsel said.

Mr Gallagher, for Anglo, denied any delay and said the bank had provided a detailed affidavit setting out its efforts to help put the two companies — JRM Hotels Ltd and Blarney Inns Ltd — on a sound financial footing from early 2009 when it learned of their financial difficulties. A plan advanced to save the companies did not have sufficient credibility and the bank was concerned that monies were taken by Mr Moran from the companies to pay for his personal borrowings and for other matters. In those circumstances the bank’s credit committee decided in December 2010 to appoint a receiver over premises held by various companies of Mr Moran.

It was “extraordinary” for Mr Moran to make claims about Anglo’s insolvency when he was looking for more money from the bank all the time and not making repayments, counsel said.

Mr Justice Kelly said the evidence was Anglo had “bent over backwards” to accommodate Mr Moran and he was satisfied there was no culpable delay on the part of the bank in seeking to fast-track the case. While counsel for Mr Moran had made “something like a political speech” about inequality of arms and debt collection, Mr Moran was represented by counsel and solicitors and the fast and efficient service provided by the Commercial Court was in the interests of all litigants.

It was true the nature of the court’s work had changed and bank claims over debts, rare in the past, were commonplace now across all the courts, he said. That was unfortunately part of the courts work “given the climate in which we operate”.