A DEVELOPER being pursued by AIB over €20 million in unpaid loans has claimed the bank courted his business aggressively and abandoned basic principles of credit risk in “throwing” large sums of money at him without seeking independent land valuations or conducting due diligence.

AIB had brought its case against Gerard O’Rourke, Mill House, Ballyclough, Co Limerick, over loans advanced for what Mr Justice Peter Kelly previously described as “land speculation” and development purposes in Clare and Cork.

Mr Justice Kelly yesterday ruled that Mr O’Rourke had made out an arguable defence to the bank’s claim for €20.7 million summary judgment orders against him entitling him to a full plenary hearing.

While Mr O’Rourke faced an uphill struggle to show that loan documents signed by him did not mean what they say, the judge said there was some support for his claim that AIB always understood, while the loans were advanced personally to Mr O’Rourke, that his company Chieftain Construction Ltd was very much involved.

Mr O’Rourke had also argued that the bank had not properly reviewed the loan arrangements before issuing its demand for repayment in November 2009, not in accordance with contractual arrangements between the sides. He further argued he should be permitted see all relevant documentation in possession of AIB.

In personally opposing the summary judgment application earlier, Mr O’Rourke said it was intended the loans would be repaid from sales of completed units in developments but AIB’s withdrawal of facilities had impaired his ability to repay interest. He said AIB actively pursued his commercial business in 2005 and 2006.

Hugh Mohan SC, for AIB, said that while the bank may have been irresponsible in some respects, that was not a legal defence.