Wednesday 23 May 2018

AIB secures €6m debt ruling against widow

Last week High Court judge Mr Justice Seamus Twomey ruled that Siobhan Smith did not have a credible defence to the enforcement of the guarantee and a summary judgment in the sum of €6m (stock picture)
Last week High Court judge Mr Justice Seamus Twomey ruled that Siobhan Smith did not have a credible defence to the enforcement of the guarantee and a summary judgment in the sum of €6m (stock picture)
Samantha McCaughren

Samantha McCaughren

AIB has secured a €6m judgment against Siobhan Smith, widow of the late businessman Frank Smith.

The couple had acted as guarantors of loans in excess of €50m advanced to Frank Smith and their developer son Gary Smith related to the purchase of the Submarine Bar and the Ashleaf Shopping Centre, both located in Crumlin, Dublin.

A guarantee, dated April 30, 2008, was capped at €6m. Siobhan Smith disputed the entitlement of AIB to summary judgment in respect of the joint and several guarantee. The widow argued that the guarantee was misrepresented to her by her husband and her son Gary Smith as being a limited recourse guarantee whose exposure, she said, was limited to two houses in the exclusive K Club.

Frank Smith, whom Siobhan Smith alleged was a "bully", but whom she loved "very much", despite his alleged undue influence, died in March 2015.

Their son Gary Smith was adjudicated a bankrupt in 2013.

Last week High Court judge Mr Justice Seamus Twomey ruled that Siobhan Smith, who had filed two "carefully drafted" affidavits with the benefit of legal advice, did not have a credible defence to the enforcement of the guarantee and a summary judgment in the sum of €6m.

Sunday Indo Business

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