€236m orders over unpaid loans

FOUR Cork businessmen have had judgment orders totalling more than €236 million entered against them to date in favour of three banks arising mainly from unpaid property loans.

The four consented at the Commercial Court this week to summary judgment orders for €135m each being entered against them in favour of Ulster Bank.

They had previously consented to some €63m summary judgment orders against them over facilities provided by Bank of Ireland and to summary judgment orders for some €38.2m in favour of Anglo Irish Bank.

The four are: Michael Conway Senior, Maglin House, Carriganarra, Ballincollig, Co Cork; Michael Conway Junior, Lake View, Faha, Dripsey, Co Cork; Kieran Conway, Burkes Hill, Tivoli, Cork, and Paudie Dennehy, Seaview, Ballinaskulla, Myrtleville, Co Cork.

The €135m judgment orders were sought by Ulster Bank arising from various guarantees provided by the defendants on dates in 2006, 2007 and 2009 over loans for property developments including the purchase of a site at Dennehy’s Cross with planning permission for 143 residential units and the purchase of a 63 acres at Castletreasure, Douglas, Cork.

Bank of Ireland had previously obtained summary judgment for €62.9m, also on consent, against the four. That claim arose from loans advanced to the defendants, trading together as the Conway Partnership, and included some €38.5m claimed under guarantees allegedly provided by them over the liabilities of Rumex Ltd and Daphne Investments Ltd, trading as Dee Partnership.

The Conway loan facility was provided mainly to refinance previous loans for development of a property at City Square, Watercourse Road, Cork.

The Dee Partnership loan was made primarily to refinance previous loans related to construction works on the Cork property.

The court heard a receiver had been appointed by Bank of Ireland and the sale of some of the property had realised only small amounts.

In separate proceedings, Anglo Irish Bank had secured summary judgment for €38.22m over unpaid loans given to the men in April 2009 to enable them renew an existing loan facility for a site at Grand Parade Plaza, Grand Parade, Cork.

The loans were also to fund the purchase of additional properties adjacent to the Grand Parade site.


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