€47m Cork legal action

An investment fund is seeking summary judgment for €47m against property developers Michael and Kevin Corbett, as well as an additional €10m from Michael Corbett, arising out of an alleged failure to repay bank loans.

The application has been brought by LSREF III Achill Investments Ltd, a Dublin-registered firm engaged in fund management, against Michael Corbett of Annaville, Western Rd, Cork and Kevin Corbett, Grenagh, Co Cork, in respect of several loans it acquired from Ulster Bank in November 2014.

The matter came before Mr Justice Brian McGovern, who agreed to have the case put on the fast-track Commercial Court list. The case will be heard later this year.

The investment fund seeks judgment against the Corbetts in respect of monies loaned to them in June 2011 by Ulster Bank as part of an agreement to renew existing loan facilities.

LSREF claims monies were advanced to finance an office building and student accommodation at Copley St, Cork; 88 student apartments at Bachelor’s Quay, Cork; as well as to finance a portfolio of several commercial and residential properties in Cork city centre.

The loans were to finance the development of a building at South Mall, Cork. The loans, it is claimed, were repayable on demand, and it is alleged that a sum of €47.2m remains due and owing on those facilities.

In addition, the company is also seeking judgment against Michael Corbett in respect of monies loaned to him by Ulster Bank in October 2010 to continue existing facilities used to purchase 16 acres of land in Grenagh and to continue an existing facility to finance a property located at Grafton St, Cork.

The loans, it claims, were also repayable on demand.

In respect of the October 2010 facilities, the company claims that €10.54m remains due and owing by Michael Corbett.

Demands for repayment of all the loans were made in March of this year, arising out of an alleged failure to make repayments on the loans. It is claimed the demands for payment have not been satisfied by the defendants.

In a sworn statement to the court, LSREF III Achill Investments Ltd director Jeffrey Johnston said several meetings were held with the Corbetts and their advisers, but failed to produce an agreement between the parties in respect of the loans.

Arising out of that, letters of demand were issued.