ACC Bank is seeking summary judgment orders for almost €33 million against a Dublin businessman arising from unpaid property loans and guarantees.
The proceedings against John Walsh, Tinnahinch, Plunkett Avenue, Westminster Road, Foxrock, were transferred to the Commercial Court today by Ms Justice Mary Finlay Geoghegan on the application of Rossa Fanning for ACC.
The bank is seeking summary judgment for €30.2 million against Mr Walsh in one set of proceedings, while in a separate application, it wants €2.67 million summary judgment against him on foot of his alleged guarantee of loans given to Marydean Properties Ltd.
Both cases have been adjourned to Monday next to allow Damian Keaney, for Mr Walsh, take instructions as to whether any defence will be made to the applications for summary judgment.
ACC said the €30 million claim arises from a €26.6 million loan facility, plus interest roll-up of €3.19 million, extended to Mr Walsh and two other men in January 2008.
Most of that facility refinanced existing borrowings with Anglo Irish Bank relating to lands at Termonfeckin, Co Louth, and Ballyboghil, Co Dublin. The site at Drogheda Road, Termonfeckin, had planning permission for a new village centre and residential units, but ACC said it became apparent within a reasonably short period after draw-down of the loan that a build out of the site was not commercially viable because the property market had deteriorated.
The loan was also made for a medium term development of some 172 acres at Ballboghil made up of two acres zoned residential and 170 acres zoned agricultural.
The bank said the borrowers were actively involved in negotiations with a local GAA club to participate in a land swap that was expected to provide an opportunity to begin development of the area zoned residential.
ACC said, as far as it was aware, no progress was made with the GAA club nor with local councillors in relation to a formal agreement in that regard.
The bank claims it was an express term of the loan it was to be repaid within two years but that it had agreed in January 2010 to extend the loan term for a further year, meaning the final repayment date was January 15th, 2011.
It is alleged Mr Walsh failed to provide the bank with a satisfactory repayment proposal or exit strategy prior to the final repayment date or since and repayment of €30.1 million was demanded from him on January 19th last.
No repayment was made and with interest continuing to accrue at more than €7,300 daily, more than €30.2 million is due and owing, the bank claims.
ACC also claims, prior to issuing its demand against Mr Walsh, it had written to all three borrowers in December 2010 seeking their proposals. However, while the other two borrowers had responded, Mr Walsh had not responded to the bank’s communications at all since a meeting of August 2009, ACC said.
In separate proceedings, ACC is seeking summary judgment orders for €2.67 million against Mr Walsh and also against Mr Richard Murphy, Oak House, Hainault Road, Foxrock, Dublin, arising from alleged guarantees provided by both men in 2005 and others related to a €2.8 million loan to Marydean Properties Ltd.
The loan was advanced in relation to the acquisition and refurbushment of commercial investment properties at Gladstone Street, Clonmel, Co Tipperary. The bank claims €2.67 million remains outstanding under the guarantees.
Those proceedings have also been adjourned to Monday to allow the defendants consider whether they will enter a defence.
