A HIGH Court judge in Northern Ireland has blocked an attempt by Anglo Irish Bank to wind up a company owned by a Belfast developer which the bank claims owes it £10 million.
The injunction granted last week centres on what Mr Justice Deeny described as a “genuine and substantial dispute” between the bank and companies controlled by property developer Peter Curistan.
Details disclosed in the injunction papers reveal that close to the heart of the dispute is Anglo’s relationship with 10 clients who were given loans totalling £451 million to buy shares in the bank.
Mr Justice Deeny was highly critical of what has been coined the “golden circle” deal which he described as a “prima facie improper and unlawful proceeding”.
The High Court judge said there is “a clearly arguable case” that the golden circle deal was “the real reason” why a business transaction involving one of Mr Curistan’s companies in the North failed to go through.
The injunction Mr Curistan won against Anglo Irish Bank relates to Marcus Ward Limited.
Anglo has been served with “restraining presentation of or further action on foot of the winding-up petition” against Marcus Ward Limited.
The company operates the Odyssey VIP bar in the Odyssey Pavilion, a major entertainment complex in east Belfast.
One of Mr Curistan’s other interests, Sheridan Millennium Ltd, previously held the long-term lease on the Odyssey Pavilion before transferring it over to a sister company, Odyssey Pavilion LLP.
Anglo Irish Bank appointed an administrator to this particular company last year.
However it is the role the bank played when it was involved in negotiations to sell the long-term lease which has been particularly highlighted by Justice Deeny.
The injunction documents state that in early 2009 Sheridan Millennium Limited owed around £80 million to Anglo Irish Bank.
The value of its leasehold interest could have been worth about £43 million based on a valuation in early 2009.
Mr Curistan, the principal shareholder, and chief executive Peter Holmes wanted a “buyer for their interests so that they could concentrate on other matters”.
The injunction documents detail that the bank’s “preferred bidder” – despite the alternative of another serious bid – was the Northern Ireland property development company PBN.
The Belfast-based company is controlled by the former manager of Anglo Irish Bank in the North, Neil Adair, as well as Brian McConville and Paddy Kearney.
According to Justice Deeny’s judgment documents, “encouraged by the bank, Mr Curistan and Mr Holmes opted for PBN”.
However in November 2009, the bank decided to “pull the plug” on the deal.
The reasons why have not been documented, but Mr Justice Deeny has outlined that over this period of time, it became public knowledge that Mr Kearney was one of the “golden circle” of Anglo Irish Bank’s 10 clients.
