Thursday 17 August 2017

Mansfield ordered to repay €214m to Bank of Scotland

John Mulligan

John Mulligan

Hotelier Jim Mansfield has been ordered to repay loans totalling €214m to Bank of Scotland, cementing the demise of another businessman who flourished during the boom.

Justice Peter Kelly of the Commercial Court told counsel for Mr Mansfield -- who built the Citywest Hotel in Saggart, Co Dublin -- that the businessman had no arguable defence against the bank's claim for repayment.

Bank of Scotland was granted a summary judgment against Mr Mansfield (72), who the court heard suffers from a number of medical conditions, the most serious being multiple system atrophy.

It follows a €74m judgment that was secured against Mr Mansfield by Nama in October. That ruling related to loans granted by Irish Nationwide to two of his firms where he provided personal guarantees. He is appealing that decision.

Mr Mansfield's legal team had argued in court in relation to the latest case that Bank of Scotland had refused to advance up to €20m required to complete the Citywest complex.

Counsel for the bank had dismissed any notion that a failure of advance additional funds had served to hasten the demise of the Mansfield group.

Receivership

The hotel operation, which includes a golf course and conference centre, was placed in receivership last year by Bank of Scotland.

Last month, as hearings into the case got under way, counsel for Bank of Scotland said that most of the loans attached to the Mansfield Group had been in "serious and repeated default".

The court was told at the time that the lack of additional funding being made available from the bank in no way caused the collapse of Mr Mansfield's "magnificent empire".

Mr Mansfield had argued that the absence of that additional funding had delayed the final completion of the Citywest project, causing cashflow problems that prompted the collapse of his business.

Justice Kelly yesterday refused an application by Mr Mansfield's legal team to put a stay on the order granted to Bank of Scotland pending a possible appeal to the Supreme Court.

Mr Mansfield is suffering from severe medical conditions, including multiple system atrophy and wasn't in court yesterday.

See business supplement

Irish Independent

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