Former taxing master James Flynn and a company of which he is a director have consented to judgment in favour of AIB.
At the High Court yesterday Mr Flynn agreed to judgment of €2.5m while the company Fortberry Ltd consented to a judgment of more than €5m in favour of AIB.
The bank brought proceedings arising out of monies it loaned Fortberry Ltd in 2008.
It sought judgment against Mr Flynn, for €2.5m on foot of a guarantee he allegedly entered into in respect of the loan facilities.
The action was brought after the defendants allegedly failed to satisfy a demand for repayment of the monies AIB claimed were due and owing to it.
Mr Flynn is a director and shareholder of the company, the court heard. The claim was defended, and was due to be heard before the High Court yesterday.
When the case was called Mr Justice Paul Gilligan was told by Lyndon MacCann, counsel for AIB, the company and Mr Flynn were consenting to judgment being made against them in favour of AIB.
Mr Flynn, a solicitor of Dowth, Co Meath, is a retired taxing master.
Following submissions from the parties Mr Justice Gilligan placed a stay on the execution of the judgments until October to allow Mr Flynn and the company sell assets, including a number of properties, to reduce what is owed.
The company and Mr Flynn had sought a stay of nine months so assets could be sold.
Mr MacCann initially told the court AIB was opposing any stay on the judgment. The relationship between the parties were not good counsel said.
However, following discussions AIB said it was willing to agree to a stay on the execution of the judgments until early October once certain conditions, including that there be full co-operation with the bank, were complied with by the defendants.
The court heard Mr Flynn and Fortberry Ltd would comply with the conditions sought by the bank.
The judge said an application could be made in October to extend the stay. The fudge also granted both parties liberty to apply to the court should the need arise.
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