The total known bank debts owed by the two Dublin-based solicitors at the centre of several High Court actions have passed the €100 million mark. Simon Carswell, Finance Correspondent, reports.
The Irish Timeshas established that Anglo Irish Bank is owed more than €13 million by solicitor and property developer Michael Lynn, bringing his total known borrowings so far to more than €70 million. The bank is also owed more than €4 million by solicitor Thomas Byrne, whose Walkinstown practice was closed on Monday by the Law Society and whose whereabouts are unknown.
His known liabilities stand at €36 million to four financial institutions, although his total debts will be far higher, as he owes money to at least four more lenders.
Mr Lynn's liabilities are expected to be higher than €70 million.
Unlike some other financial institutions who have provided loans to Mr Lynn and Mr Byrne, Anglo Irish's liabilities are secured and it has perfected first charges against their properties. The bank has a policy of not providing loans on solicitors' undertakings, a mechanism that allows a solicitor to draw down a loan in a property deal without immediately registering the lender's security.
Mr Lynn and Mr Byrne used such undertakings to take out multiple mortgages on the same properties from several banks, leaving some of the banks' debts unsecured.
On Thursday, in an effort to recover its money, Anglo Irish appointed a receiver, Dublin accountancy firm McStay Luby, to some of Mr Byrne's properties on which its loans have been secured.
AIB told the High Court yesterday it was owed €7.1 million by Mr Lynn, while First Active said it was owed more than €5.1 million. Both banks are seeking judgment against Mr Lynn. Mr Justice Peter Kelly said it seemed all the banks were "rushing for judgment" and seeing who would "get there first".
Mr Lynn owes money to at least 10 financial institutions, seven of which are owed more than €65.2 million. They are Anglo Irish Bank, Irish Nationwide Building Society, IIB Bank, Bank of Scotland (Ireland), Permanent TSB, AIB and First Active. ACC Bank, NIB and Ulster Bank provided loans totalling €5.71 million this year alone. It is not yet known whether they provided earlier loans.
The court heard on Thursday that the financial institutions had "an information deficit" in Mr Lynn's case. They have agreed to exchange information.
The cases taken by IIB and the Law Society against Mr Byrne will be heard again on Tuesday, as will the applications by AIB and First Active to seek judgment against Mr Lynn.