DANSKE Bank is suing the former head of finance at collapsed stockbroker Bloxham for more than €2m.
This morning the lawsuit against Tadgh Gunnell, former head of finance and compliance at Bloxham, came before the Master of the High Court Ed Honohan.
The debt case is expected to be followed, within weeks, by additional legal actions against six other partners of the failed stockbroking form as part of a broader attempt to have €34m in loans repaid.
In court papers grounding the action against Mr Gunnell, Danske is seeking final judgment of €1.95m, with continuing interest at a rate specified in a loan facility dated January 20, 2011.
Alternatively, it is seeking court interest at 8pc.
The case was adjourned until November 21st at the request of Mr Gunnell's barrister.
Danske agreed to the adjournment.
Bloxham collapsed at the end of May, 2012, after the Central Bank found "financial irregularities" in it's accounts.
For the previous five years, the company had a €5.3m shortfall on its balance sheet.
During this time the accounts were audited by Deloitte.
There were seen partners in Bloxham, which operated as an unlimited partnership. Insurance company FBD had a limited partnership share.
Danish-owned Danske funded the buy-out of some former partners for €34m when the seven took control. It is understood some €14m of this was borrowed by partners through unlimited companies.
The bank, which is represented by Dublin law firm Ivor Fitzpatrick and Company, is alleging that the financial accounts that the buy-out was based on were “faulty”.
The case of Mr Gunnell, who is being represented by McDowell Purcell solicitors, is listed separately from those of the other six as Danske is alleging he prepared false accounts.