Monday 16 September 2019

Developer fails in bid to stop sale of his loans to a fund

A court of appeal denied bid
A court of appeal denied bid

Tim Healy

A property developer has lost an appeal in which he challenged the sale of his and his company's loans of around €25m to a fund.

William Farrelly, of Hill of Wall, Athboy, Co Meath, and his company, Vitgeson Ltd, also failed in his appeal over a challenge to the power of receiver Tom O'Brien of Mazars to sell properties on which loans were secured.

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Mr Farrelly and a company he is director of, Vitgeson Ltd, have been involved in property development for 40 years.

Promontoria (Arrow) Ltd says it bought from NAMA a number of loans originally made by AIB to both Mr Farrelly and the company.

Security was provided from some 32 apartments, 26 houses, and five commercial properties. The properties included a house in Rathgar and an apartment in Dundrum, Dublin as well as a number in Co Meath.

Mr Farrelly and his company claimed the recovery of certain loans he had, which NAMA later sold to Promontoria, were not actionable by Promontoria.

He also claimed the fund was precluded by law from relying on certain mortgages because of representations between NAMA, him and his company.

It was also claimed the receiver was only a rent receiver and did not have the power to sell the properties.

In 2017, the High Court dismissed the claims and gave judgment to Promontoria against Mr Farrelly for €15.3m and against Vitgeson for €11.3m.

He appealed but on Thursday a three-judge Court of Appeal dismissed his case.

Irish Independent

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