Stay on €25m judgment against Conlan
Published 20/01/2012 | 05:00
KILDARE developer Gerry Conlan has been ordered by the Commercial Court to repay €26.2m to AIB arising from an unpaid loan made to him, businessman Philip Lynch and to members of Mr Lynch's family, to buy development lands in Waterford.
But the enforcement of this judgment has been put on hold by the court pending the outcome of the Lynch family's Supreme Court action challenging their liability to repay the €26.2m.
John Hennessy, for AIB, said the sides had agreed to the limited stay on conditions pending the determination of the Lynchs' appeal.
Rossa Fanning, for Mr Conlan, said he wished to stress Mr Conlan was not consenting to the €26.2m judgment but recognised, given the court's decision in the Lynch case, it would be futile to have a trial of the matter.
Mr Conlan would be filing a notice of appeal against the judgment order in his case but would not move to prosecute that appeal pending the outcome of the Lynch appeal, counsel added.
He was one of Ireland's biggest property developers, who the court heard owed AIB €226.6m at the height of the property boom but now "has no money".
He gave AIB a €127.5m personal guarantee against his loans. Mr Conlan's empire also include the Mount Carmel Medical Group, which owns private hospitals in Dublin, Sligo and Kilkenny. He is also one of the 10 business people rounded up by Anglo Irish Bank's former chief executive David Drumm to buy Sean Quinn's 10pc of the bank in a last-ditch attempt to stop it from imploding. He has been ordered to help a fraud probe into this transaction.
This judgment follows proceedings AIB took against Mr Conlan and the Lynchs over the €25m loan they jointly took out in 2007 to buy land at Kilbarry, Waterford. They wanted to develop it into retail and residential areas. The land is now valued between €3m and €4m.