AIB granted order on €2.7m O’Reilly shares
Published 13/05/2015 | 02:30
AIB has obtained a conditional court order giving the bank a charge over €2.7m worth of shares held by, or on behalf of, businessman Tony O’Reilly in the Dromoland Castle holding company.
The order is aimed at giving the bank priority over Mr O’Reilly’s other creditors in relation to the shares in AIB’s continuing efforts to recover a €22.6m judgment entered against him last June.
Inclusive of interest, and following the sale of certain assets, his total indebtedness to AIB stands at €15.2m.
Mr Justice Brian McGovern granted AIB the order following an ex-parte application which was made by its lawyers in the Commercial Court yesterday.
He also granted liberty to the bank to notify Dromoland Castle Holdings Ltd (DCHL) Co Clare, of the making of the order. He further granted it liberty to notify the making of the order to Wall Street investment institution BNY Mellon National Association to which the shares are secured.
In an affidavit, AIB manager Bernard Carroll stated Mr O’Reilly, who has a home valued at €18.5m in the Bahamas, told the bank on April 20 of a proposal to enter a “composition with his creditors under Bahamian law” – similar to Ireland’s personal insolvency arrangements.
Mr O’Reilly provided a statement of his assets and liabilities saying 8,216 shares in DCHL were secured to BNY Mellon and were valued at €2.74m and AIB has no knowledge of such a security interest.
AIB has objected to a number of issues including that it believes the proposed composition is “procedurally flawed”.
The judge made the matter returnable for next week.