€10m developer debt judgment ruled valid
THE Court of Appeal has dismissed a businessman's case against a summary judgment for £9m (€10.2m) arising out of his personal guarantee on unpaid loans of around £22m made to a company.
National Asset Loan Management Ltd (NALM), part of Nama, sought the judgment against Michael Breslin over loans advanced by the former Anglo Irish Bank in 2007 to a company, Car Park Solutions (CPS), with registered offices at Belturbet, Co Cavan.
Anglo Irish Bank advanced a loan of £21.4m in 2007 for CPS to acquire a property call Partnership House in Waterloo Road, London, for €25m.
Mr Breslin has been resident in the US since the 1980s and also had a residence with his wife Dolores at Woodbridge Stud, Dunsany, Co Meath.
Mr Breslin's brother Barry, and their cousin Francis Smith, were involved in property construction through their company Keelagh Homes and the proposal was to develop the Waterloo Road property as a hotel at a cost of €61m.
Michael Breslin provided security for the loans through first legal charge on a CPS deposit account with a balance equal to six months interest. Additional security included composite joint and several guarantees of Barry Breslin and Mr Smith.
After Anglo was nationalised NALM acquired the bank assets of CPS.
When the company defaulted on the loans, a receiver was appointed. NALM invoked the loan guarantees and sued for summary judgment which was granted last May by the High Court.
Mr Breslin appealed, but in her decision on behalf of a three-judge Court of Appeal, Ms Justice Máire Whelan dismissed the appeal on all grounds.