Companies controlled by brothers Michael and Richard Larkin have secured a temporary High Court injunction restraining Ulster Bank Ireland transferring their loans to any third party.
The brothers, whose family have been involved in the property business for many years, fear sale of the €87m loans to an unknown third party may adversely affect an action their companies have brought against the bank over losses allegedly suffered due to alleged mis-selling and misrepresentations by the bank.
The loans have been performing and the companies are happy to repay their indebtedness fully, the court was told.
As a result of the bank’s alleged actions, it is claimed the companies were forced into selling two valuable properties at Belgrave Road and the Old Jewry in London.
The companies — European Property Fund PLC, Laurelmore Limited, and Vieira Ltd — today secured a temporary injunction preventing sale of their loans pending the bank’s disclosure of information to them relating to any proposed sale.
The ex-parte application (one side only represented) for the injunction was made to Mr Justice Paul Gilligan who returned the matter to next Tuesday.
Seeking the injunction, Michael Howard SC, with Jarlath Ryan BL, said Viera and EPF are suing the bank over “calamitous losses” estimated at some €30m which they claim to have sustained as a result of entering into derivative agreements with Ulster Bank Ireland.
Separately, the bank is attempting to sell the companies’ indebtedness to financial institutions such as hedge funds, counsel said.
His clients were not seeking to stop their loans being sold but they were concerned and alarmed as to what effect the sale of their indebtedness may have on their action against the bank.
While they had sought information in relation to the terms and conditions of the proposed loans sale of their loans, the bank has not provided them with that information, counsel said.
His clients’ loans have been performing and they are happy to repay their indebtedness fully, he added.
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