Hickey pharmacies drop action to halt €45m IBRC loan sale

An action by the Hickey pharmacy group and its owner Patrick Hickey aimed at preventing their loans, valued at up to €45m, being included in a portfolio of €900m loans offered for sale by the liquidators of IBRC, has been withdrawn on confidential terms at the High Court.

The group had complained its own offer to buy the loans for €40m had been rejected and the sale would be “disastrous” for the group and its 300 employees.

The importance of the action — which challenged the constitutionality of provisions of the IBRC Act and had implications for other parties who wish to prevent their loans being sold arising from the special liquidation of IBRC — was underlined by the presence of six senior counsel in court yesterday as the case was due to open before Mr Justice Iarfhlaith O’Neill. There were also several junior counsel and solicitors in court.

Michael Cush SC and John Gleeson SC represented the Hickey side; Michael Collins SC and Cian Ferriter SC represented IBRC and Michael McDowell SC and David Barniville SC represented the State.

After discussions between the parties, Mr Cush told the judge the case was being withdrawn and could be struck out with no order. His side was to make a contribution to the respondents' costs, counsel added. The judge said he was very pleased the parties resolved a “very complex” case.

Patrick Hickey was in court but declined to comment, other than to say he was “happy”.

The Hickey side had argued their loans are fully performing and the sale of them as part of a larger portfolio or their transfer to Nama would be “disastrous”. Their concern was the loans may be sold to a person or entity “not interested in maintaining a long- term banker/customer relationship” or, if the €900m portfolio was not sold, all those loans would be moved to Nama to the detriment of the Hickey side and contrary to its business plan.

Terms of the Hickey side’s withdrawal are confidential.