Judgment orders for more than €16.5 million have been entered against property developer Paddy Kelly and his sons Simon and Christopher under a settlement with ACC Bank of legal proceedings over unpaid loans.
A €16 million judgment obtained last year against Mr Kelly’s daughter Emma - which was stayed pending the outcome of proceedings - was also vacated today under the settlement.
ACC has also agreed not to move against the Dublin city home of Christopher Kelly as part of its efforts to execute judgment.
The settlement terms were presented to Mr Justice Peter Kelly at the Commercial Court today by Damian Keaney, for the Kellys, and consented to by Rossa Fanning, for ACC.
The proceedings involved Paddy Kelly of Shrewsbury Road, Dublin; Simon Kelly, Dunganstown, Co Wicklow; Christopher Kelly Lad Lane, Dublin 2; and Emma Kelly, Harcourt Terrace, Dublin 2.
The judge had last May found ACC was entitled to judgment orders against Mr Kelly and his three children requiring them to pay some €16 million arising from guarantees over property and other loans.
However, a stay was placed on registration or execution of the judgment orders pending the outcome of claims by the Kellys that the Bank’s handling of various issues exacerbated their financial difficulties and prevented them reducing their indebtedness.
Most of the €16 million claim related to guarantees allegedly given by the Kelly defendants over loans of late 2007 to Pressaro Ltd, with registered offices at Lower Baggot Street, Dublin, to buy what is known as the Cablelink/NTL property at Pembroke Place, Ballsbridge.
Paddy Kelly previously consented to a court order for judgment for €6.1 million against him personally over failure to repay other loans advanced by ACC. The €6.1 million judgment related to several loans advanced by ACC, including a €4.87 million loan of March 2005 relating to construction of 62 apart-hotel units at the Clarion Hotel, Liffey Valley.
Today, Mr Keaney said the issues between ACC and his clients had been resolved on terms including an order striking out the claims by his clients against the Bank.
The terms also involved the judgment orders of €16 million obtained last year against Paddy, Simon and Christopher Kelly being increased in each case by some €544,040 to a figure of some €16.5 million. The stay on judgment was also lifted in each case.
The judgment order obtained against Emma Kelly, plus a costs order against her, were to be vacated in their entirety, counsel added.
Mr Keaney said the settlement effectively means the liabilities of Emma Kelly, her mother Maureen and Mr John Kelly were being transferred over to Paddy, Simon and Christopher Kelly. It had also been agreed ACC is not entitled to execute judgment against Christopher Kelly’s private residence at Lad Lane, Dublin 2.
The settlement also included an acknowledgement by Pressaro that it owes some €17 million, plus continuing interest, to ACC, the court heard.
Mr Justice Kelly said the court would receive and file the settlement terms which brought an end to the proceedings.
Judgment order entered against developer
MARY CAROLAN
Judgment orders for more than €16.5 million have been entered against property developer Paddy Kelly and his sons Simon and Christopher under a settlement with ACC Bank of legal proceedings over unpaid loans.
A €16 million judgment obtained last year against Mr Kelly’s daughter Emma - which was stayed pending the outcome of proceedings - was also vacated today under the settlement.
ACC has also agreed not to move against the Dublin city home of Christopher Kelly as part of its efforts to execute judgment.
The settlement terms were presented to Mr Justice Peter Kelly at the Commercial Court today by Damian Keaney, for the Kellys, and consented to by Rossa Fanning, for ACC.
The proceedings involved Paddy Kelly of Shrewsbury Road, Dublin; Simon Kelly, Dunganstown, Co Wicklow; Christopher Kelly Lad Lane, Dublin 2; and Emma Kelly, Harcourt Terrace, Dublin 2.
The judge had last May found ACC was entitled to judgment orders against Mr Kelly and his three children requiring them to pay some €16 million arising from guarantees over property and other loans.
However, a stay was placed on registration or execution of the judgment orders pending the outcome of claims by the Kellys that the Bank’s handling of various issues exacerbated their financial difficulties and prevented them reducing their indebtedness.
Most of the €16 million claim related to guarantees allegedly given by the Kelly defendants over loans of late 2007 to Pressaro Ltd, with registered offices at Lower Baggot Street, Dublin, to buy what is known as the Cablelink/NTL property at Pembroke Place, Ballsbridge.
Paddy Kelly previously consented to a court order for judgment for €6.1 million against him personally over failure to repay other loans advanced by ACC. The €6.1 million judgment related to several loans advanced by ACC, including a €4.87 million loan of March 2005 relating to construction of 62 apart-hotel units at the Clarion Hotel, Liffey Valley.
Today, Mr Keaney said the issues between ACC and his clients had been resolved on terms including an order striking out the claims by his clients against the Bank.
The terms also involved the judgment orders of €16 million obtained last year against Paddy, Simon and Christopher Kelly being increased in each case by some €544,040 to a figure of some €16.5 million. The stay on judgment was also lifted in each case.
The judgment order obtained against Emma Kelly, plus a costs order against her, were to be vacated in their entirety, counsel added.
Mr Keaney said the settlement effectively means the liabilities of Emma Kelly, her mother Maureen and Mr John Kelly were being transferred over to Paddy, Simon and Christopher Kelly. It had also been agreed ACC is not entitled to execute judgment against Christopher Kelly’s private residence at Lad Lane, Dublin 2.
The settlement also included an acknowledgement by Pressaro that it owes some €17 million, plus continuing interest, to ACC, the court heard.
Mr Justice Kelly said the court would receive and file the settlement terms which brought an end to the proceedings.
