Bank seeks €1.5m order from former pharma chief

A bank is seeking €1.51m summary judgment orders against the former chief executive of a healthcare company, representing the maximum sum allegedly due under his limited guarantees concerning loans advanced to the firm.

Mark Gordon’s liability under guarantee arises because the company has failed to repay some €6.02m, Bank of Ireland claims.

The bank has initiated proceedings against Mr Gordon, of Glen Rd, Hollywood, Belfast, arising from unpaid loans advanced to VFM Healthcare Ltd, which owned and operated St Francis’ Private Hospital at Ballinderry, Mullingar. A receiver was appointed to the company in April 2014.

Mr Justice Brian McGovern agreed to transfer the proceedings to the Commercial Court. After being told that Mr Gordon argues he has a defence to summary judgment and the parties had agreed directions for exchange of legal documents, the judge returned the matter to April.

The bank claims it advanced some €4.8m to the company under a commercial loan facility of July 2012 and, in February 2013, advanced a further facility of some €737,000. An additional €950,000 was advanced in April 2013 via a temporary increase in the company’s credit card facility, it is alleged.

The bank claims that, in January 2011 and July 2012, Mr Gordon, had entered into guarantees of the liabilities of the company up to a maximum €1.512m.

The company later encountered financial difficulties and underwent a reorganisation and investment from an entity known as the Steinberg Trust, the bank said. Mr Gordon had fallen ill in September 2013, it said, and ceased to be actively involved in day-to-day management of the company but continued to be employed as chief executive.

The bank said Mr Gordon resigned as a director of the company in March 2014.

Notwithstanding the reorganisation, the company later defaulted on its repayment obligations, leading to the bank issuing a demand in April 2014 for repayment of some €6.02m, it is claimed.

The bank said the €6.02m sum remains unpaid and, as a result, some €1.512m is due from Mr Gordon under his guarantees, it is alleged.