Ex-rugby star Frankie Sheahan's dad sued over €2.9m debt
Published 05/03/2013 | 05:00
THE father of former Ireland and Munster rugby player Frankie Sheahan is being sued over a €2.9m debt.
It arises out of alleged guarantees given by Frank Sheahan Snr for loans given by Bank of Ireland to Frankie, and to another son, Joey.
In correspondence with the bank last month, Frank Sheahan Snr had expressed disappointment that none of the repayment proposals advanced on behalf of his family were accepted.
The bank said it had considered Mr Sheahan's request but believed it was not appropriate to defer the legal action.
The case was transferred to the Commercial Court yesterday by Mr Justice Peter Kelly who made directions for exchange of legal documents between the sides.
The bank's move comes after what it said was a failure to reach a "mutually acceptable solution" following lengthy negotiations between it and the Sheahans over repayment of outstanding sums on loans advanced by Bank of Ireland Mortgage Bank to buy residential properties.
The bank last year appointed Michael McAteer of Grant Thornton as receiver to 17 residential properties of the Sheahans located in Cork and Greystones, Co Wicklow.
In its action, BOI Mortgage Bank is seeking payment of some €2.97m from Frank Sheahan Snr, Uplands House, Shanakiel, Cork, arising from various alleged guarantees and indemnities allegedly executed by him over loans to his sons made on dates from 2005.
It demanded payment of that sum on January 13 last but it remains unpaid. It is claimed Mr Sheahan Snr provided a guarantee for a €2.34m loan advanced to Frankie in 2007 and some €1.5m remains outstanding under that loan.
The bank also claims Mr Sheahan Snr is liable for further sums of €937,132 under a December 2005 guarantee; for €283,285 under a guarantee of some loans to his son Joey; and for €253,782 under a December 2007 guarantee of another loan.
The bank claims there was a pattern of continuous default on the accounts at issue.
It was also concerned about "a material inaccuracy" in a statement of affairs of Joey Sheahan provided in January 2012 related to ownership of a property in Douglas, Co Cork.