BoI secures judgment of €22.5m against businessman
BANK of Ireland has secured a €22.5m summary judgment order on consent against Dublin businessman Frank Gormley over unpaid property loans.
The bank told the court yesterday that it intends to seek similar orders shortly over the same loans against Smart Telecom purchaser Brendan Murtagh and two Cork businessmen.
One of these, Greg Coughlan, is the subject of an arrest warrant over his failure to obey court orders in proceedings over other unpaid loans and is believed to be in Spain.
The proceedings arise over a July 2006 €22.6m loan facility to four defendants: Frank Gormley, of Maple Road, Clonskeagh, Dublin; Brian Madden, of Well Road, Douglas, Cork; Greg Coughlan, of Fastnet House, The High Road, Kinsale, Cork; and Brendan Murtagh, of Dunheeda, Kingscourt, Co Cavan.
Most of the monies were advanced to refinance previous loans advanced by the bank to purchase 17 apartments -- 10 at Copley Hall, Cotter Street, Cork and seven at Estuary Court, Rochestown Road, Cork -- plus eight car parking spaces in Cork city and two commercial units at Fingal Bay Business Park, Balbriggan. Some €5.7m was also advanced for equity release.
The bank claimed the facility was repayable in full on, or before, June 30, 2009. Demand for payment was issued in July 2010.
To date, Mr Murtagh, Mr Madden and Mr Coughlan have had total judgments for more than €60m entered against them in the Commercial Court.