Lender claims businessman owes €20m for developments
Published 13/04/2010 | 05:00
ALLIED Irish Banks (AIB) is suing a businessman for more than €20m over loans advanced for what a judge yesterday described as "land speculation" and development purposes in Clare and Cork.
Counsel for Gerard O'Rourke, of Mill House, Ballyclough, Co Limerick, argued that the bank's action last November in demanding repayment of the €20.76m sum was premature given the nature of the facilities advanced.
James Doherty also said his client was working under contract in Libya and his side needed time to respond to the claims made.
In admitting the case to the Commercial Court, Mr Justice Peter Kelly said the claim related to loans advanced for the purpose of land speculation and development.
The bones of a defence had been outlined and he listed the bank's application for summary judgment for hearing on June 3.
The claim arises over loan facilities allegedly given to Mr O'Rourke for the purpose of acquiring three sites intended for significant residential developments. They were at Conna and Castlemartyr in Co Cork and at Corbally, Co Clare.