Jersey-based builder David Kennedy, who was involved in a large development planned for Clancy Barracks in Dublin, is being pursued at the Commercial Court for a further €7.5 million by Bank of Scotland over guarantees of loans to building companies.
The bank’s summary judgment proceedings are to be fast-tracked by the court in tandem with separate proceedings in which it is claiming another €8 million in judgment orders against Mr Kennedy arising from his alleged limited guarantee of a €260 million loan.
The €8 million proceedings were transferred to the court last week and the latest proceedings – for €7.5 million – were transferred yesterday on the application of Kelley Smith, for Bank of Scotland.
Mr Justice Peter Kelly directed the bank's summary judgment applications in both cases will be dealt with on July 31st when he will decide whether any defence has been raised entitling Mr Kennedy to a full hearing.
Mr Kennedy was involved in Clancy Quay Properties Ltd (CQP), which paid some €25 million for the 13.5 acre site of the 19th-century Clancy Barracks site at Inchicore, Dublin. CQP bought the site for some €25 million and purchase and development loans were financed by Bank of Scotland (Ireland) and National Irish Bank.
Both banks, now owed some €260 million, later appointed receivers. A development of some 420 apartments on the site was completed and went on sale last April, marking the largest distressed property sale in Dublin to date.
Security trustee
In its first action against Mr Kennedy, Bank of Scotland, acting as security trustee for loans advanced by it and NIB, claims development loans of some €260 million were advanced to CQP on foot of securities including a guarantee of Mr Kennedy limited to €8 million.
Mr Kennedy, the court heard, will argue he is not liable to repay any sum on grounds including BOS had a 20 per cent shareholding in CQP and various actions of it concerning the development had caused losses.
In its second action, the bank wants €7.5 million summary judgment orders arising from guarantees of Mr Kennedy of the debts of Davitt Road Developments to a maximum €3 million, plus interest and costs.
