Allied Irish Banks has secured an interim charging order over some 90,000 shares in Barry’s (Cork) held by a director of that company as part of the bank’s effort to execute a €8 million judgment order obtained against that director and another businessman.
Donagh Barry, Cowper Road, Rathmines, Dublin, and Michael McCarthy, Shrewsbury Downs, Ballinlough, Co Cork, had not advanced any defence last May to AIB’s application for €8 million summary judgment orders against them, and Mr Justice Peter Kelly granted the judgment orders.
The applications arose from personal guarantees provided by them in August 2007, up to a maximum €8 million, over loans provided to Central Plaza Properties Ltd with registered offices at Cork Road, Midleton, Co Cork.
Dermot Cahill, for AIB, today sought charging orders against some 90,000 shares, a 9 per cent shareholding, held by Mr Barry in Barry’s (Cork), an unlimited company, of Kinsale Road, Cork.
In court documents, Mr Barry was said to have held, within the last ten years, directorships of Barry’s Cork, Barry’s Tea, Central Plaza Properties and four other companies.
Mr Justice Kelly made the interim charging order and returned the matter in two week’s time when Mr Barry will have an oportunity to argue against the charging order being made absolute.
AIB brought the proceedings after advancing loans of some €18 million to Central Plaza Properties to develop a zoned site in the Mahon district of Cork city. The bank said the proposed development did not proceed because it was not considered financially viable due to deteriorating market conditions in April 2008 when planning permission was secured.
After the company defaulted on interest payments in 2009, the bank demanded repayment in late 2009, but no repayment was made. It then initiated proceedings against the guarantors.