AIB fails to reach deal over €6.28m owed by consortium
Published 16/03/2010 | 05:00
ALLIED Irish Bank has failed to reach an agreement with four businessmen, including a son of well-known hotelier Jim Mansfield, over the repayment of some €6.28m arising from loans advanced in 2003 to buy lands in Co Meath and the construction of a mixed development of apartments and a commercial unit on those lands.
The proceedings had been admitted to the Commercial Court last week but were adjourned for a week after the court heard the defendants had made proposals which the bank wished to consider. Yesterday, Denis McDonald, representing AIB, said the talks had "come to nothing" and the bank was proceeding with its application.
Ms Justice Mary Finlay Geoghegan adjourned the case to next month. The proceedings are against Brian Higgins, of Allensgrove, Celbridge Road, Leixlip, Co Kildare; Seamus Kavanagh, of Kyle, Killea, Templemore, Co Tipperary; James Mansfield Junior, of Palmerstown House, Johnstown, Co Kildare; and Glen O'Callaghan, of Drapier Road, Dublin 11.
The bank claims the defendants had formed a partnership, entitled the 'Duleek Partnership"', for the purpose of acquiring the lands and developing them for onward sale.
The bank demanded repayment of the loans in September last year.