A FINANCE company has launched a legal battle against aircraft companyexecutives Philip de Vere Hunt and Pat Moloughney in a €9 million row.
The two men owe more than €9.6m after their business, Skypro Executive Jets, defaulted on its loans, according to a High Court writ.
Now GE Capital Equipment, which loaned Skypro €9.6m to buy a Hawker 850XP jet, is suing the two men, claiming they failed to make good on guarantees they provided.
GE Capital provided a loan totalling €9,654,536 to Tipperary-based Skypro in December 2006, allowing the company to buy the aircraft, reg EI-KJC.
Skypro should have repaid the loan by 120 monthly instalments, as well as a bullet loan repayment of €5.2m with the final repayment, the writ says.
Mr de Vere Hunt, of Ardmayle House, Cashel, Co Tipperary, and Mr Molougney, of Newpark Dualla, Cashel, provided written guarantees on December 15, 2006, that they would pay the aircraft mortgage if Skypro failed to, it is alleged.
Skypro failed to make the repayments due in January, February and March this year, or a charge of €366,702.36 relating to exchange rates between euro and dollars, in breach of the agreement, the writ claims.
GE then wrote saying the loan agreement was terminated, and that it planned to enforce its security by taking possession of the plane.
The plane, which is hangared at Shannon Airport, has not yet been sold or leased out by the finance company, the writ says,
GE Capital argues that although it demanded the two men should pay €9,641,932.68 owed by Skypro, they have failed to pay a penny, and owe the money with interest.
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