NAMA wins orders against trio over loans

THE National Assets Management Agency, in the first court application of its type, has secured multi-million euro summary judgment orders against three businessmen – Patrick Shovlin and hoteliers Patrick and Anthony Fitzpatrick – over unpaid loans to their companies by Bank of Ireland.

The loans included a €280 million loan to a company for the Beacon South Quarter development in Sandyford.

Mr Justice Peter Kelly in the Commercial Court queried why Bank of Ireland had agreed to limit the businessmen’s liability under guarantee for that amount to about 5% of the sum due. Mr Justice Kelly asked where was “the commercial logic” in the bank agreeing to limit the liability under guarantee to such an extent that there was no recourse to about 95% of the debt. “Why would a bank do that?” he asked.