Loans totalling £75,546, which were taken out by Mr Dermot Desmond to fund the refurbishment of Celtic Mist and which the businessman said had been "settled", have yet to be repaid, the tribunal was told yesterday.
In a statement in January 1998, in response to an article in Magill magazine, Mr Desmond said he arranged the loans in consultation with Mr Conor Haughey, the skipper and part-owner of the boat, and that "these loans have been settled".
But Mr John Coughlan SC, counsel for the tribunal, said the loans had not been repaid.
He said Mr Desmond had agreed with Mr Conor Haughey about three years ago that the loans would be repaid when funds became available from the sale of Celtic Mist.
Mr Haughey has further confirmed to the tribunal that the money has not been repaid.
Mr Coughlan said Mr Desmond had informed the tribunal that he made a series of payments totalling £75,546 between April 1990 and February 1991 to a yacht designer, Mr Ron Holland, to pay for the repair and redesign of the boat. The payments were made after Mr Haughey, who owned the boat with the rest of the Haughey children, approached him and said the boat needed refurbishment but that funds were not available.
Mr Desmond had said he would arrange a loan and would introduce Mr Haughey to Mr Holland, who designed NCB Ireland, a yacht sponsored by Mr Desmond's company NCB Stockbrokers to compete in the round-the-world race.
No securities were formalised in relation to the liability.
Mr Haughey in a statement to the tribunal had said that he approached Mr Desmond after purchasing Celtic Mist as he knew the businessman, and knew he would be in a position to give him sound financial advice.
He asked Mr Desmond to help him get a good price from Mr Holland and also for advice as to how the project might be financed.
Mr Haughey said Mr Desmond indicated that he would lend the money for the refurbishment and that it was understood between them that the loan would be backed by Mr Haughey's shares in Feltrim Mining plc.
Mr Coughlan said it appeared, from information furnished by Mr Desmond, that the money came from loans made available by Dedeir, an investment company, then of 48 Lower Mount Street, Dublin (now of Douglas, Isle of Man), and Freezone Investments, c/o an address in Guernsey.
