€6m judgment entered against Setanta House Hotel owner

Danske Bank seeks judgment against businessman over guarantees for firm Connotes

Businessman Sean McElvaney has had summary judgment for €6.4 million entered against him at the High Court Photograph: Michaela Rehle/Reuters
Businessman Sean McElvaney has had summary judgment for €6.4 million entered against him at the High Court Photograph: Michaela Rehle/Reuters

A businessman who bought and did up an hotel in Co Kildare which later went into receivership has had summary judgment for €6.4 million entered against him at the High Court.

Danske Bank, formerly National Irish Bank, sought judgment against Sean McElvaney over guarantees for his company Connotes relating to a €6.4 million facility made in 2004 for matters including development work at the former Setanta House Hotel in Celbridge.

There was default on the loans and, in 2011, the bank appointed a receiver over the hotel which was sold. The bank received about €815,000 when the receivership was completed.

Mr McElvaney claimed, when he signed the guarantee for Connotes loans, he believed his liability was limited to €1.3 million.

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He claimed he did not have very good reading skills, having left school at 15 and also did not have independent legal advice when he signed.

He claimed he would not have entered a guarantee for €6.4 million because he did not have personal assets allowing him repay such an amount.