Tuesday 27 September 2016

Bank is seeking €7.5m from brothers

Tim Healy

Published 05/07/2016 | 02:30

AIB Headquarters in Dublin Photo: Bloomberg
AIB Headquarters in Dublin Photo: Bloomberg

TWO brothers have consented to judgment for some €7.5m being entered against them in favour of AIB under their guarantees of loans made to their development company.

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That company, H2 Developments Ltd, had difficulty selling apartments at Bastion Quay, The Docks, Athlone, due to the decline in the property market and flooding near the development, AIB said in court documents.

A solicitor representing Conor Heavey, Ban Uisce Bay, Athlone, and David Heavey, Bastion Quay, told Mr Justice Brian McGovern at the Commercial Court that his clients were consenting to judgment as sought by the bank.

The proceedings arose on foot of guarantees, limited to €10.2m, provided in 2007 by both brothers concerning liabilities of H2 Developments, of which both are directors and 50pc shareholders. The bank had in 2009 advanced loans to H2 for purposes including refinancing existing facilities and to complete construction of the Bastion Quay development.

AIB also in 2009 made available a personal facility of some €692,000 to the brothers. When repayment was not made, AIB issued its legal proceedings seeking judgment against the brothers for some €7.5m.

Irish Independent

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