Businessman owes lender €2.28m after equity fund crashed
FRIENDS First has secured summary judgment for €2.28m against a Dublin businessman over his failure to repay a loan for investment in a Swiss private equity firm.
In granting judgment against Kevin Brophy, Mr Justice Peter Kelly remarked it would be no consolation to Mr Brophy to know he was not alone as a lot of people appeared to have made equity fund investments "to their cost".
There was no appearance by Mr Brophy, of Carlton, Pembroke Gardens, Ballsbridge, Dublin, yesterday and Hugh O'Keeffe, for Friends First, said it had been indicated the application would not be opposed.
The bank said Mr Brophy was advanced some €2.25m by Friends First Finance in December 2007 on foot of a loan agreed between the parties the previous November.
The funds were to be invested in Quinlan Private, a private equity firm set up by Switzerland-based businessman Derek M Quinlan. The firm acquired high-profile properties across the world but suffered serious losses as a result of the financial crisis of 2007-2010.
Under the terms of the agreement, Mr Brophy was to pay the bank €2.25m on or before January 1, 2013. Interest was to be repaid in 60 monthly instalments.
The bank said Mr Brophy had allowed arrears to build up as a result of which it terminated the agreement last March and demanded repayment of the total amount due. When that was not repaid, it issued the proceedings.