SEVEN BUSINESS people are being sued for €16.3 million over unpaid loans made to a partnership to develop a property in Dalkey, Co Dublin. Zurich Bank claims the property is now worth no more than €3.5 million.
The proceedings by the bank against the seven came before the Commercial Court this week but were adjourned by Mr Justice Peter Kelly for two weeks to allow issues of service of the proceedings on the defendants to be addressed.
The defendants are: Noreen Hynes, Larkinstown, Coolree, Co Wexford; Ambrose O’Brien, Kilcraigue, Kilcloon, Co Meath; Mary Murphy, Leinster Woods, Carton Demesne, Maynooth, Co Kildare; Mary Prenderville and Frankie Dwyer, both of Albany Road, Ranelagh, Dublin; Des O’Sullivan, Windermere, Dublin Road, Naas, Co Kildare; and Colm Sugrue, Glenabbey Road, Mount Merrion, Co Dublin.
Zurich claims it advanced a €15 million loan facility to the defendants in October 2007 to purchase a 1.45-acre site with full planning permission at Santa Maria, Cunningham Road, Dalkey, plus the rear garden of Arranmore, 13 Cunningham Road. The loan was secured by means including a deed of mortgage and charge of October 15th, 2007, it also claims.
It is claimed the defendants made a number of interest repayments but have failed to pay interest due from December 2008.
A receiver was appointed over the property by the bank on February 19th, 2009. Last November it demanded repayment of some €16 million.
