Trio are sued for €21m over 'default on €10m loan deal'
THREE men are being sued by a businessman for more than €21m over an alleged default on a €10m loan.
The loan, given to buy land at Millennium Park in Naas, Co Kildare, rose to €21m because it was repayable over three years at an annual rate of 30pc.
Dermot O'Rourke of Keredern House, Naas, Co Kildare, has brought his action against Thomas Considine, of Coast Road, Oranmore, Co Galway; Patrick Sweeney, of Main Street, Loughrea, Co Galway; and Gerard Prendergast, of Moortown, Naas, Co Kildare.
Shareholder
The case arises from the sale in August 2006 of lands at Millennium Park by Mr O'Rourke, who is being pursued by Bank of Scotland Ireland (BoSI) for more than €16.5m over unpaid loans to a property company, and Gerry Conlan to the defendants.
The sale was effected through the purchase by the defendants of the share capital of two companies, Bandenberry Ltd and Maplefern Holdings Ltd.
Mr Justice Peter Kelly admitted the case to the Commercial Court yesterday and adjourned it to next Friday when he said he wants to hear the nature of any defence proposed to the application for summary judgment against the three.
Counsel for Mr O'Rourke said the matter was urgent because his client was facing a summary judgment application on December 18, and these proceedings could affect that case.
In his action, Mr O'Rourke alleges he agreed to provide the defendants with a €10m loan so they could provide shareholder loans to Oberstown Developments Ltd for the purchase of lands at Millennium Park.
He claims it was agreed the loan, plus all accrued and unpaid interest, would be repaid by August 9 2009.
He claims the defendants drew down the €10m but failed to repay it by August 9 last, leaving some €21.9m now due and owing.
- Tim Healy
Irish Independent
