Developer Lynch's family set to appeal 'catastrophic' €26m order
BUSINESSMAN Philip Lynch and his family are to appeal against "catastrophic" orders requiring them to repay a bank loan of €26m.
Allied Irish Bank was yesterday granted judgment orders for €26m each against Mr Lynch, his wife Eileen and children Judith, Paul, Phillipa and Therese. The loans in question were given to the family and developer Gerry Conlon to buy development lands in Waterford in 2007.
The judgment orders are not due to come into effect until January 11 after Mr Justice Michael Peart granted a temporary stay. In January he will rule whether the family are entitled to a longer stay while they appeal the decision in the Supreme Court.
Mr Conlon's barrister Rossa Fanning said the court decision that the Lynchs were liable for the loans meant that his client could not defend a similar judgment being entered against him.
He said that if the Lynchs won their appeal, that would get his client "off the hook" and would mean he was also not liable to AIB.
Earlier, the Lynchs' barrister Michael McDowell SC had objected to the judgment orders. He said the bank had not called any oral evidence of its actions concerning the loan. Furthermore, he said the effect of judgment orders against various members of the family whose assets didn't come near €26m was "catastrophic".
He said that as a measure of the seriousness with which the family viewed the appeal, Mr Lynch was prepared to lodge €500,000 in court. The family was also prepared not to reduce their assets pending the outcome of the appeal.
Michael Collins SC, for AIB, opposed the stay and said the family's grounds of appeal against the bank were "incredibly thin".