BANKS AND financial institutions are applying to the Commercial Court on a weekly basis in a bid to recover multi-million-euro loans, most relating to building and commercial developments.
Mr Justice Peter Kelly yesterday dealt with separate applications by ACC Bank, Bank of Ireland and the EBS Building Society aimed at recovering loans amounting to more than €20 million.
In one case, the judge ordered a construction company, in receivership, and its directors to repay to ACC Bank loans of €9.5 million relating to developments in Carrick-on-Shannon, Co Leitrim.
Such summary judgment applications by financial institutions are reflective of a pattern over several months now. They have coincided with large numbers of applications, again mostly related to building developments, where parties are seeking orders requiring others to honour contracts agreed before the credit crisis.
While the court has made many orders for summary judgment and specific performance, it is apparent there is little prospect of recovering monies in many cases. On occasion, defendants have turned up themselves to tell the court they cannot afford lawyers and are unable to pay their debts.
Among the new cases dealt with yesterday was an application by ACC Bank plc against Leatime Construction Ltd (in receivership), with registered offices at Drumlish, Co Longford, and its directors Philip Mullins, Drumure, Longford, and Larry Keogh, Cattan, Mohill, Co Leitrim.
The bank sought orders for repayment of loans made in 2005, 2006 and 2007 to the company and guaranteed by both directors.
A solicitor for the defendants said they were not defending the matter and not objecting to judgment being entered against them, although they did dispute the total amount of €9.5 million being claimed. Mr Justice Kelly said he would enter judgment in the amount sought and also awarded costs of the bank.
In another case, judgment was entered in favour of ACC for an amount of €4.43 million against Cormac MacCarthaigh, Wooden House, Kilmore Quay, Co Wexford, arising from personal guarantees given by him over loans made by ACC in 2005 to Tymonville Ltd, with registered offices at Wooden House, Kilmore Quay.
The loans related to the purchase and redevelopment of the Wooden House pub and 12 apartments. The bank said it had demanded repayment in September but none had been made. A similar application by the bank against Mary MacCarthaigh, wife of Mr MacCarthaigh, who is also alleged to have given a personal guarantee over the loans to Tymonville, was adjourned.
