Cork couple face €2.4m demand for loans secured on their farm

A couple are facing a demand for summary judgment for around €2.4m arising out of loan facilities secured on part of their dairy farm.

ACC Loan Management (ACCLM), formerly ACC Bank, is seeking the judgment order against Peter and Tracy Kingston, Craden Hill, Nohoval, Kinsale, Co Cork.

The case was admitted to the Commercial Court list yesterday by Mr Justice Brian McGovern on consent between the parties.

In an affidavit, Michael Leogue, a team leader in specialised asset management in ACCLM, said the main loan of €2m was advanced in 2007 to restructure the couple’s existing borrowings with AIB. Repayments for the first five years were on an interest-only basis. In 2008, a further €500,000 was advanced for the construction of farm buildings.

The principal security held by ACCLM in relation to both facilities was over 170 acres of their land. During the interest-only period, the couple were in arrears at various times, although repayments were regularly made, Mr Leogue said.

ACCLM was made aware of cashflow difficulties the couple had and tried as far as possible to support and work with them, he said. A new repayment arrangement was worked out in 2014 but a number were missed.

The bank also became aware the couple had cancelled a life policy which formed part of the collateral and they had taken out a new policy which was also cancelled later by the insurer due to failure to make payments, Mr Leogue said.

On January 15, a formal demand for repayment of the full €2.4m loan was issued and all that was received was a repayment cheque of €1,500, he said.