FF councillor ordered to repay loan

A FIANNA Fáil councillor and his wife have been ordered by a High Court judge to repay commercial loans totalling €2.6 million to Bank of Ireland.

Mr Justice Peter Kelly made the order yesterday against Gerard Killally, an auctioneer, and his wife Naomi, of Shean, Edenderry, Co Offaly, who were separately represented, after being told there was no dispute the bank was entitled to repayment of loans due, but there was a dispute about the exact amount owed.

Bernard Donleavy, for Ms Killally, said his client believed the debt was overstated by about €250,000 and was opposing the case being admitted to the Commercial Court. Noting the amount sought by BoI was €2.9m and it was entitled if it chose to apply for a money judgment, the judge said he would admit the case and enter judgment against the Killallys in the sum of €2.6m. He adjourned to January next the hearing of the dispute over whether the remaining monies up to €300,000 were owed.

The bank claimed it advanced loans of some €2.9m to Mr Killally on accounts maintained by him at the BoI branch in Edenderry and that an additional €53,000, plus interest, was due on monies loaned and covered by a letter of guarantee.

It also claimed it had lent about €2.9m to Ms Killally on accounts maintained by her.

It claimed the loans were advanced to purchase commercial properties and to refinance existing facilities. It also claimed a guarantee of July 2007 effectively made both defendants liable jointly and severally for the monies.

The bank claimed it had extended credit facilities to Mr Killally, who had banked with it since 1992 in Edenderry, for an extended period and had advanced a €1.5m commercial mortgage facility in February 2006. It claimed it made further facilities available in May 2006 and in August 2006 made €1.2m available under a credit agreement facility.

The defendants had failed to make repayments in accordance with the terms of the various facilities, it claimed.

Yesterday’s proceedings are the second set of proceedings involving Mr Killally to be admitted to the Commercial Court.

In earlier and separate proceedings, Mr Killally and another auctioneer, Richard Connor, who is manager of the Co Offaly senior GAA football team, are being sued over “secret profits” of several million euro allegedly made by them from a number of land deals in Co Offaly.

That case against both men was admitted to the Commercial Court in October when Mr Justice Kelly noted it involved “serious allegations”.

Three businessmen – Adrian Daly, Racefield House, Cappincur, Tullamore; Declan Guing, Carrick Road, Edenderry; and Frank Lawlor, Clonmullen Lodge, Edenderry, — brought the case over partnerships formed between various combinations of the sides to acquire lands and deal in lands.

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