Agreement has been reached between a number of creditors of businessman Tony O'Reilly relating to AIB's efforts to get a priority charge over €2.7 million worth of shares held for him in the Dromoland Castle holding company, the Commercial Court has heard.

Following the agreement, the court made absolute a conditional order, granted last week, which gave AIB priority over Mr O'Reilly's other creditors in relation to the shares.

The order was sought as part of AIB’s continuing efforts to recover a €22.6 million judgment entered against the businessman last June. Inclusive of interest, and following the sale of certain assets, his indebtedness to AIB stands at around €15.2 million.

Dromoland Castle Holdings Ltd (DCHL), Newmarket- on-Fergus, Co Clare, and Wall Street investment institution BNY Mellon National Association, to which the shares are secured, were parties to the action.

The court previously heard that 8,216 shares, valued at €2.74 million in DCHL, were secured to BNY Mellon.

Mr Justice Brian McGovern made the conditional order absolute following talks between lawyers for AIB, BNY Mellon, DCHL and a representative of three financial institutions who say they are owed a combined €135 million by the businessman.

Prior interest

Under the order, AIB and BNY Mellon agreed that €15.26 million, plus continuing interest, stands charged in favour of AIB on the 8,216 shares held by or on behalf of Mr O’Reilly in DCHL. It is subject to any prior interest of BNY Mellon in those shares.

The order is also without prejudice to any rights and entitlements of DCHL or it shareholders under the provisions of any shareholders agreement or the company’s articles of association.

James Doherty, for AIB, said there were no objections to the conditional order being made absolute.