Friday 20 September 2019

Fund seeks €4.1m over Romanian deal

Stock image
Stock image

Tim Healy

A fund is seeking judgment for around €4.1m against a man who, along with two others, borrowed money to fund the purchase of a commercial investment property in Romania.

Promontoria (Aran) Ltd is seeking summary judgment in the Commercial Court against Andrew Sheehy, of Wintergarden, Pearse Street, Dublin 2.

Promontoria says Mr Sheehy and two other men borrowed €3.69m from Ulster Bank in 2009 to fund the property investment in Neocity, Bucharest. The loan was one of joint and several liability and security was by way of a mortgage over certain land and property in Portarlington, Co Laois.

In 2015, Promontoria acquired the loan.

It demanded repayment in May 2017 when the outstanding amount stood at just over €4m but no payment was made, it says. It appointed receiver Paul McCleary over all the secured assets.

As a result, Promontoria is seeking judgment for €4.1m against Mr Sheehy.

On Monday, Edward Farrelly BL, for Mr Sheehy, opposed the entry of the case to the Commercial Court on grounds of delay.

Kelley Smith BL, for Promontoria, said while there had been delay, it was not culpable delay.

Mr Justice Robert Haughtons said he was impressed with the engagement between Mr Sheehy and the fund and he was prepared to admit the case to the commercial list. He said the case could come back in three weeks.

Irish Independent

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