Bank pursues developer for €88m

Kildare-based developer Dominic Fagan is being pursued by Bank of Scotland for about €88m over personal loans and his guarantees of loans to two property companies.

The action against Mr Fagan, Blackhall, Clane, Co Kildare, was transferred to the Commercial Court yesterday by Mr Justice Peter Kelly, who listed it for hearing in December.

Mr Fagan’s Fagan Group is said to have total liabilities of €98m. An examiner was appointed by the High Court to one company in the group, the Clane Inn Ltd, last July, despite the bank’s objections.

Yesterday, Rossa Fanning BL, for the bank, rejected claims it had delayed in bringing the case. The bank had exercised “forbearance”, but a strategy provided by Mr Fagan for disposal of assets, including pubs, shops, cinemas, and warehouses, was not acceptable.

Gary McCarthy SC, for Mr Fagan, argued the bank had not engaged in agreeing a strategy but instead sought information about assets, which was given.

Mr Justice Kelly rejected arguments of delay by the bank which would disallow a fast-tracking in the Commercial Court.

The bank wants summary judgment for sums of about €83.9m, $4.87m (€3.75m), and £82,000 (€101,000) against Mr Fagan related to 14 personal loan facilities advanced by Bank of Scotland Ireland to him from 2000 onwards. The claim also arises from guarantees provided by him in 2007 of the liabilities of two companies — Tigginstown Construction Ltd, with registered offices at Naas, Co Kildare — and Edelvale Properties Ltd, with registered offices at Blackhall, Clane.

The bank says after the facilities expired or were in default, it communicated with Mr Fagan about his personal liabilities and those of the Fagan Group with a view to agreeing a strategy to reduce the indebtedness.

In Sep 2011, Mr Fagan provided the bank with a schedule of his assets and an asset disposal plan but the bank later decided that was not acceptable.

The bank says it ultimately arranged to meet with Mr Fagan on May 30 to inform him it could no longer tolerate the default, and told him other proposals were unacceptable.