Case against ‘vulture fund’-appointed receiver in south Dublin

A company has secured a temporary High Court injunction preventing a ‘vulture fund’-appointed receiver from carrying out any of his functions in respect of a south Dublin property consisting of several apartments and a car park.

The injunction was secured by Pikesville Holding Limited in its proceedings against Pentire Property Finance DAC and insolvency practitioner Tom Kavanagh following his appointment as receiver over a car park serving several retail units and a number of apartments at Killinarden, Dublin 24.

The injunction restrains both the fund and Mr Kavanagh from taking any steps or exercising any powers on foot of the deed of appointment of July 26 in respect of the property at the centre of the dispute.

At the High Court yesterday, Bernard Dunleavy, for Pikesville, said his client was seeking orders because Pentire has no entitlement to appoint a receiver over the plaintiff’s property.

His client also fears the property would be sold quickly by the receiver unless prevented by the court, said Mr Dunleavy.

He told Ms Justice Bronagh O’Hanlon that Pentire is an entity commonly described as “a vulture fund” which acquired loans Pikesville had taken out with Bank of Scotland (BoS) when the bank exited the Irish market. Counsel said Pikesville borrowed monies from BoS in 2005 and 2007.

Mr Dunleavy said Mr Kavanagh was appointed by Pentire as receiver of the property on July 26 on foot of a floating charge it claims was made between Pikesville and BoS in 2005.

The appointment was made after the fund said its demand for the immediate payment of some €7.19m which it claims is due and owing from Pikesville was not satisfied. Counsel said that as part of the terms and conditions of the loan agreements, a floating charge was placed as security over Pikesville’s assets by Bank of Scotland.

However, in 2010, BOS, when extending the length of the loan facilities, excluded the charge. Mr Dunleavy said the charge was not reinstated, despite a request by the banks to do so. Counsel said the effect of this was that neither BoS, before it sold the loans, nor the fund when it acquired the loans, has a right or entitlement to appoint a receiver over the Killinarden property.

Ms Justice O Hanlon said she was satisfied to grant the injunction and adjourned the matter to Wednesday.


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