ALLIED IRISH Banks (AIB) has secured summary judgment orders for some €18 million against a development company over failure to repay a loan to refinance a property acquisition in Killarney, Co Kerry.
Mr Justice Peter Kelly granted the order against Cronin’s Wood Developments Ltd, South Mall, Cork, at the Commercial Court. He also entered judgment for €10 million arising from guarantees over the loan provided by a solicitor, Fergus Appelbe, and a businessman, Peter O’Sullivan, Oakwood Manor, Killowen, Kenmare (who died in June 2008).
The €10 million order is against Mr Appelbe, Ivy Cottage, Bandon, Cork, and, in her capacity as executrix of the estate of Mr O’Sullivan, Peggy O’Sullivan, his widow.
The court heard the company and Mr Appelbe consented to the judgment orders, while Ms O’Sullivan had said she did not wish to participate in the proceedings.
The orders arose from an €18 million loan given by AIB to Cronin’s Wood in July 2007 mainly to refinance the acquisition costs of a 60-acre site at Deerpark, Killarney, and to fund the purchase of 50 per cent of the shareholding in Cronin’s.
Mr Appelbe and Mr O’Sullivan provided guarantees to the bank for €5 million each in respect of the indebtedness of Cronin’s Wood, the Bank claimed.
In an affidavit, Shane O’Callaghan, manager of AIB’s credit management department in South Mall, Cork, said the bank demanded repayment of the Cronin’s Wood loan, which had risen to €18.1 million, on December 2nd last but the company failed to repay it.
The bank then demanded that Mr Appelbe and Ms O’Sullivan discharge the €5 million owed under the guarantees provided but they failed to do so.
Mr Justice Kelly entered summary judgment against the company for €18.1 million and against Mr Appelbe and Ms O’Sullivan for €10.7 million.