ALLIED IRISH Banks is seeking summary judgment orders for almost €60 million against developer Dermot O’Rourke arising from unpaid loans and guarantees mostly related to properties here and in the UK.
Bank of Scotland Ireland, now Bank of Scotland plc, previously secured €16.5 million judgment orders against Mr O’Rourke and, the court heard yesterday, had initiated bankruptcy proceedings against him last month.
In 2006, Mr O’Rourke, along with developer Gerry Conlan, sold 400 acres associated with the Millennium Park business park in Co Kildare for €320 million.
AIB’s action is against Mr O’Rourke; his wife Perle; Reldon Ltd, a company of which he is a director; and the Keredern partnership, of which he was a general partner before he resigned in May 2010. All have addresses at Keredern House Stud, Naas.
The bank is seeking summary judgment for about €33 million and £22 million (€24.8 million) against Mr O’Rourke and for sums of £19.7 million (€22.3 million) and €15.2 million against both Reldon and Keredern.
The bank’s claim against Ms O’Rourke is for about €517,000 arising from a March 2009 loan offer to Mr and Ms O’Rourke to finance the cost of an investment in the European Hotel Group. That investment, Ms O’Rourke’s counsel claimed yesterday, was encouraged by AIB and Goodbody stockbrokers and she was not independently advised.
All the defendants opposed the case being fast-tracked by the Commercial Court on grounds of alleged delay by the bank, since first demanding repayment of the loans in June 2010, in bringing the proceedings. Mr O’Rourke claimed he had advanced proposals to AIB in May 2010, before the demand issued, but those proposals were “ignored”.
Denis McDonald SC, for the bank, rejected those claims and said the bank had engaged in protracted negotiations with Mr O’Rourke’s advisers in an effort to agree a repayment plan and should not be penalised for not rushing to litigation.
Mr O’Rourke had failed to provide realistic proposals to provide AIB with improved security over certain assets, the bank claimed. Mr O’Rourke’s side said he was not in a position to provide improved security as he had other creditors.
Mr Justice Peter Kelly ruled while there was some delay, it was not such as to prevent transfer of the proceedings. After that ruling, counsel for Mr O’Rourke suggested mediation may be the best means of addressing the situation.
The judge said steps could be taken towards mediation prior to the case coming back before the court in October.
