Health Minister James Reilly is one of a number of financial backers of a Tipperary nursing home who have “taken the hit” over their investment, the High Court heard yesterday when it was told agreement has been reached in a legal dispute with other investors.
The Greenhill Nursing Home in Carrick-on-Suir, with 55 residents, is to be sold by order of the court to discharge a €2.1m bank debt owed by other investors.
The court heard Dr Reilly, with three other people and co-owner/operator of the nursing home, Dilip Jondhale, were “recourse” investors in 2000 when the investment was set up which made them personally liable for monies borrowed for the project.
Eight other people were “non-recourse” investors and they had an option after 10 years to call on the recourse investors to sell the nursing home to them for €1.9m, which would secure the release of the eight from all liabilities on the property to Bank of Ireland.
The five non-recourse investors also consented to indemnify the eight concerning any liability to BoI under a co-ownership agreement for the nursing home which was a successful business, the court heard previously.
When the recourse owners were unable to comply with the sale option, the eight sought and obtained judgment in the Commercial Court for €1.9m in 2012 against them, Mark Sanfey, for Dr Jondhale, told Mr Justice Sean Ryan,
In Nov 2012, the non-recourse owners issued bankruptcy proceedings against Dr Jondhale. He then sought a court order against all the investors that the property be sold in lieu of its partition as an asset.
The case was due for hearing yesterday before Mr Justice Ryan, who was told that following talks “agreement had broken out” between the parties about selling the property.
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