A DEVELOPMENT company that owes €10 million to Danske Bank for property in Carrickmines, south Dublin, has claimed the bank promised not to call in the loan until the development was complete.
Rockridge Developments was given permission yesterday by Mr Justice Brian McGovern to cross-examine the banker who allegedly made the promise.
Danske Bank had applied to the High Court yesterday for an order for possession of 1.8 acres of land at Carrickmines, off the M50, owned by Rockridge Developments. The bank also sought two properties, one in Rathmines and one in Lucan, owned by the directors, who had issued personal guarantees for them.
Counsel for the bank said Rockridge had borrowed almost €8 million in 2006 with a bridging loan to purchase the land at Carrickmines. A further €1 million was borrowed to purchase two properties in Rathmines and Lucan.
The written loan agreements stated they were repayable on demand, counsel said. There was never a promise not to call in the debt until development was complete. The outstanding debt was now just under €10 million and the bank was entitled to obtain orders for possession “to mitigate the large loss”, he said. Counsel for Rockridge said the company had been paying interest on the loans and was not “toxic”, he said. It initially sought and received planning permission for 65 apartments, but when the market changed, it reapplied and received permission for 21 luxury homes.
The directors had invested €2.5 million in developing the site, and the problems had only started when the loan was called in. The company was stuck from the time the “guillotine was brought down by the plaintiff”, counsel said, because no other investor could now come on board. The case was adjourned.
The judge granted four orders for possession in other cases yesterday.
