Monday 26 September 2016

Bank of Ireland secures €2.2m judgment against fuel distributor

Tim Healy

Published 09/11/2015 | 16:29

Michael Curran also faces a separate action by a receiver to his business over alleged failure to co-operate with the receivership.
Michael Curran also faces a separate action by a receiver to his business over alleged failure to co-operate with the receivership.

BANK of Ireland has secured a judgment for around €2.2m against Co Meath fuel distributor Michael Curran who also faces a separate action by a receiver to his business over alleged failure to co-operate with the receivership.

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Mr Curran, from Oldcastle, did not appear before the Commercial Court, nor was he represented, when Rossa Fanning BL, for the bank, applied to have the judgment entered against him.

Mr Fanning said while he had lawyers representing him for the separate proceedings by the receiver to his business, those lawyers were not representing him in the summary judgment case.

Mr Curran knew about the judgment proceedings, counsel said.

Mr Justice Brian McGovern said he was satisfied, having read the papers, to give judgment for €2.26m against him.

The judgment arose out of facilities advanced to Mr Curran's XL Fuels Group company in 2009 by way of overdraft, credit card facilities and bank guarantees, Miriam Mullally, a Bank of Ireland official, said in an affidavit.

Last March,  the bank entered into a guarantee for €1.8m, at the request of XL Fuels, in favour of Topaz Energy in order to secure a supply of fuel to the business. The guarantee was indemnified by XL.

Last August, Topaz demanded the €1.8m under the guarantee and the bank paid the money, Ms Mullally said.

The bank then demanded repayment of €2.26m loan facilities which had been advanced to XL but the company replied it was unable to pay.   

A receiver was appointed over the business.

The bank is also seeking judgment of €1m against Mr Curran's mother, Maureen who provided a guarantee for the loan facilities secured over a property used as a commercial garage in Oldcastle.

Mr Justice McGovern said he would hear the application for summary judgment against her next month after being told Mrs Curran has a defence and needed time to file an affidavit.

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