An action to stop Irish Bank Resolution Corporation selling loans of two companies operating several Cork pubs employing 255 people to the National Assets Management Agency raises "important" issues about IBRC's plans to sell other loans, the High Court heard today.
Mr Justice Paul Gilligan, on consent of the sides and the undertaking of IBRC not to sell the loans pending the outcome of an application for injunctions restraining such sale, has adjourned the action to early next year.
He was told today by Cian Ferriter SC, for IBRC, the application for injunctions restraining sale of these loans raised "important issues" in relation to "a significant number" of other loans which IBRC intends to sell.
Public interest
The matter was of significant public interest as the special liquidator was selling loans for the benefit of the taxpayer, counsel added. That process had commenced some months ago and the plaintiffs were informed by the special liquidator of his intention to sell the loans last September.
The action has been brought by businessman Brendan McCabe and two companies who own or control Bodega at Peters Market, Cornmarket Street; Sin É, Coburg Street; The Oval, South Main Street; Crane Lane, Phoenix Street, The Mutton Lane at Mutton Lane, and Arthur’s Mayne, Pembroke Street.
Mr McCabe, represented by Jarlath Ryan, says his companies are the largest pub group outside Dublin and their bars are among the best performing and most prestigious in Cork city with a turnover of about €12 million annually.
Concerns
The action was initiated arising from concerns the special liquidators of IBRC are considering selling the loans to Nama prior to the hearing of claims by Mr McCabe against IBRC alleging overcharging of interest and the misselling of derivatives dating from 2006.
Under derivative agreements, the aggregate amount of indebtedness of the two companies was about €18 million, Mr McCabe said. He had entered into a guarantee with IBRC personally securing the financial arrangements between the companies and the bank. Mr McCabe said any sale of the loans to Nama would have significant reputational consequences for him and the firms. The case was adjourned to January 14th.