Couple fears losing family home to US debt fund, court told
A PROPERTY investor fears an attempt by receivers to repossess three investment properties he and his wife own in Sandycove and Dalkey, Co Dublin, will lead to moves to repossess their family home, the Commercial Court has heard.
Shay O'Donoghue (68) and his wife Paula, borrowed €6.8m from Anglo Irish Bank between 2007 and 2010 to buy two houses on Castlepark Road, Sandycove, and one on Cunningham Road, Dalkey. The combined value today is around €4m, according to LSREF III Stone Investments, a company linked to private equity giant Lone Star. It bought the loans from Anglo's successor, IBRC.
The loans were secured on the three properties and the O'Donoghues' family home, the Coach House, Nerano Road, Dalkey.
Stone Investments says Mr O'Donoghue owes €8m arising out of failure to repay the loans.
Declan Taite and Sharon Barrett were appointed receivers over the three properties, which are rented out, as part of efforts to recover the debt.
Mr O'Donoghue then sought an injunction against Stone and the receivers challenging the validity of the appointment of the receivers. The injunction application was adjourned after the receivers undertook not to take steps to sell the properties pending further order.
Mr O'Donoghue says the family home forms part of the security over the loans and Stone has failed to comply with the Central Bank's code of conduct on mortgage arrears.
Stone says Mr O'Donoghue's claim is entirely misconceived because the receivers have not been appointed over the family home. Mr Justice Brian McGovern admitted the case to the Commercial list and said it could come back at the end of next month.