ACCBank has secured a summary judgment order for some €6.2 million against developer Thomas McFeely over non-repayment of a commercial development loan issued four years ago.

Mr Justice Peter Kelly yesterday ruled Mr McFeely, Ailesbury Road, Ballsbridge, Dublin, had no arguable defence to the bank’s claim and he granted the judgment order sought.

The judge had made a similar order against developer Larry O’Mahony, Shrewsbury Road, Ballsbridge, earlier this week over the same loan, issued in April 2005.

ACC granted the loan to repay a €4 million loan to Ulster Bank and to make some €1.89 million available for further development. The loan was secured on an apartment development at Blakestown Road, Mulhuddart; 38 acres owned by Mr O’Mahony at Dunboyne, Co Meath; an assignment of rental income from the Mulhuddart apartments; and €500,000 in a deposit account.

The bank moved in March last to call in the loan after repayment arrears of more than €600,000 accumulated on it.

In an affidavit resisting the application, both developers argued the loan was a 20-year facility and they had told ACC the arrears would be tackled through insurance monies due following a fire at the Mulhuddart premises. Mr McFeely said he had paid substantial monies for remedial works as a result of the fire but those works were only partially completed because the company carrying out the works had gone out of business.

The developers also argued they had a defence to the bank’s claims in the form of proposals to address the arrears, including finding a new tenant for the Mulhuddart apartments.

They also alleged their problems were exacerbated by the bank refusing to agree refinancing arrangements.

Yesterday, Martin Hayden SC, for Mr McFeely, said the fire at the apartments had caused many of his client’s problems and Mr McFeely needed more time to put matters in train to address the arrears.

Counsel for the bank argued both Mr McFeely and Mr O’Mahony had been given ample time to address the arrears and no repayment on the account had been made since December 2007.

Mr Justice Kelly ruled none of the arguments advanced represented any arguable defence to the bank’s claim for summary judgment against Mr McFeely.

Mr Justice Kelly entered judgment for some €6.28 million, plus continuing interest at the Courts Act rate and costs, and refused an application for a stay on those orders pending a possible appeal to the Supreme Court.