Shay O’Donoghue, aged 68, and his wife Paula, obtained €6.8m in loans from the former Anglo Irish Bank between 2007 and 2010 to buy two houses on Castlepark Road, Sandycove, and a third at Cunningham Road, Dalkey.
Their combined value today is around €4m, according to LSREF III Stone Investments which bought the loans from Anglo’s successor, IBRC.
Security for the loans was from the properties themselves as well as from the O’Donoghues’ family home, the Coach House, Nerano Road, Dalkey. Stone Investments said Mr O’Donoghue now owes €8m arising out of failure to repay the loans.
Declan Taite and Sharon Barrett were appointed receivers over the three properties, which are rented out.
Mr O’Donoghue said the family home forms part of the security over the loans and Stone has failed to comply with the Central Bank’s mortgage arrears code of conduct, requiring lenders to take certain steps to deal with arrears before taking legal action.
Stone said Mr O’Donoghue’s claim is entirely misconceived as the receivers have not been appointed over the family home. Stone and the receivers then applied to have the case admitted to the High Court’s fast-track commercial list.
Mr Justice Brian McGovern admitted the case to the commercial list and said it could come back at the end of next month.