The High Court has lifted an injunction restraining Bank of Scotland selling to a hedge fund loans of some €67 million owed to it by a shipping company employing more than 300 people here.
The Doyle Group wants to refinance its Bank of Scotland loans with Ulster Bank and claims the proposed sale to the Blue Bay fund could be damaging for it and its workers.
A holding company for several firms providing shipping and warehousing services at all major Irish ports, the Doyle Group claims the bank’s attempt to sell the debt to a third party amounts to breach of a May 2012 agreement between the parties.
Earlier this month, the group secured an interim injunction restraining BOS transferring to any third party any right, interest or obligation under that May 2012 agreement, and it had asked the court to extend that order pending the full hearing.
Yesterday, Mr Justice John Cooke said he would lift the injunction. While the Doyle group had made out an arguable case against the bank, he was satisfied, if it won its full action, any damage it may have suffered was quantifiable and would be an adequate remedy.
The matter will be mentioned before the Commercial Court early in the new year. The group claimed BOS wanted to exit the Irish market and was seeking to sell its debt for €53 million to the Blue Bay investment fund when it had been represented to BOS no such assignments should happen.
The company fears, if the debt is sold to the hedge fund, its assets could be stripped down and sold off affecting several hundred jobs.