AIB pursuing 14 for €25m

AIB is seeking summary judgment for sums totalling around €25m against 14 businesspeople in Cork and Kerry over alleged default on loans which they had guaranteed.

AIB pursuing 14 for €25m

The 14, along with a 15th man who has already consented to judgment for €1.68m, gave personal guarantees of between €170,000 and €3.8m on loans given to a company in 2008.

AIB says the 15 were liable on a several basis with limited individual liability.

The 15 are shareholders in Blagnac Investments Ltd, an Irish-registered company which holds the entire issued share capital in a Luxembourg-registered company called Blagnac Investments Sarl.

This company, in turn, owns the entire share capital in 2 Rue Dieudonne Costes SAS, which is a company incorporated in France. The money was loaned to the French-registered company which was guaranteed and indemnified by the 15.

The loan was due to be repaid by September 29, 2013, but the borrower (the company) defaulted and the bank demanded repayment of a total of just over €27m, inclusive of interest, by July 20, 2015, AIB manager Olga Gusak said in an affidavit.

Despite demand letters, the defendants failed, refused or neglected to repay, she said.

The 14 are: Seamus O’Mahony, Old Chapel, Bandon, Co Cork (who the bank says has a liability for around €2.3m); Tom Kingston, Corran, Waterfall, Cork, and John Gaffney, Ballyleigh, Waterfall (who have joint liability for €3.89m); Jeremiah Galvin, Lower Muckross Road, Killarney, Co Kerry (€1.69m liability); Chris and Marina Kay, Dromderrig, Kinsale, Co Cork (€947,367); Barry Harte, Main St, Timoleague, Co Cork (€1.15m); Tim Smyth, Bridgewater, Crosshaven, Co Cork (€472,873); Sam Russell, Delford Drive, Rochestown, Cork (€472,873 also); Connor Phelan, Phelan’s Pharmacy, Carrigaline, Co Cork (€1.68m); Brendan O’Shea, Rochfordstown, Waterfall, Cork (€1.68m); Mark O’Shea, Glendale Flowers, Waterfall (€1.68m also); Donal Kelleher, Belfry Heights, Bandon, Co Cork (€170,000) and Ray Reidy, Greenfields, Ballincollig, Co Cork (€674,182).

The 15th man, PJ Flynn, Castlewoods, Old Chapel, Bandon, Co Cork, consented to judgment against him for €1.68m in the Commercial Court yesterday.

Mr Justice Brian McGovern entered judgment for that amount against him.

The judge was told the other defendants needed time to instruct solicitors and they were given until November 13 to file replying affidavits setting out any defence they may have to summary judgment. Mr Justice McGovern entered the case against the other 14 to the Commercial Court list.

Separately, AIB is seeking summary judgment for around €1.5m against a Monaghan businessman over loan facilities for purposes including investment in a business and an industrial property.

AIB says it made various facilities available in 2009 to Barry Aughey, Tullycallick, Glaslough, Emyvale, Co Monaghan, and he has failed to meet a demand for repayment of €1.5m.

The case against him was entered into the Commercial Court list by Mr Justice Brian McGovern after the judge was told there was no opposition from Mr Aughey to the application from AIB.

However, a solicitor for Mr Aughey asked for time to take instructions from his client who will have a defence to the summary judgment application.

On July 14, the bank served a demand for repayment of around €1.5m but he failed to pay, said AIB official Lynne Allan in an affidavit. Ms Allan also said the bank is concerned there is a risk Mr Aughey may seek to initiate an insolvency process in a more “debtor friendly jurisdiction”.

This is in circumstances where he has recently issued correspondence to the bank from an address in the North, she says.

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