ACCBANK HAS secured €3.2 million judgment orders against two brothers on personal guarantees over development loans.

Martin O’Connor, Newpark, Calry Road, Sligo, and James O’Connor, with an address in England, had admitted the money was owed but had sought time to try and agree refinancing arrangements with AIB, aimed at advancing their proposed development of a site in Sligo.

Martin O’Connor told the judge yesterday they were still trying to reach an arrangement with AIB.

He agreed the money was owed but said the loans were made in 2007 and 2008 on the basis the planned development would happen. It was never intended the money would have to be repaid so quickly – within two years – and ACC’s demand for payment came because “the Tiger had crashed”.

Mr Justice Kelly said that when the application for judgment came before him last December, the brothers had not advanced a defence on “technical cod points” to avoid liability but instead asked for time to try and agree refinancing arrangements with AIB.

He had given the brothers an opportunity to do so but the matter had not progressed. Although ACC was entitled at this stage to secure judgment, and he would enter judgment in the sum sought plus interest, they could continue their efforts with AIB, he said.

Bernard Dunleavy for ACC indicated the bank would seek to accommodate the men in their efforts to refinance.

The judge also said the two men were in the same position as many other people who had given personal guarantees over loans to companies. A lot of people appeared to have signed such personal guarantees but they could not now say the guarantees did not mean what they said.

ACC brought the action over loans advanced from January 2007 to March 2008. It claimed the loan was to be repaid within two years of drawdown, with the first facility being drawn down in April 2007. It claimed all the facilities were “delinquent” by November 2009, when it demanded repayment of the €3.2 million sum.