Sunday 25 August 2019

'Maple 10' builder sued over Anglo bonds sale claim

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Stock image

Tim Healy

AN action seeking summary judgment against developer Patrick Kearney, one of the "Maple 10", for more than €16m has been admitted to the fast-track Commercial Court.

The legal row centres on an agreement Mr Kearney entered into three years ago over bonds in Anglo Irish Bank. The action is brought by Stapleford Finance DAC, which acquired the debt from Anglo.

Mr Kearney was one of the so-called Maple 10 group of investors, who bought shares in Anglo in 2008 under a deal to slash businessman Sean Quinn's stake in the lender.

Stapleford claims that by deed of settlement on November 14, 2014, Mr Kearney acknowledged he was indebted to it for €19.2m.

It arises from loan facilities entered in to, and/or guaranteed by him, with Anglo and later assigned to Stapleford.

The fund agreed to accept €2.3m in satisfaction of Mr Kearney's outstanding liability. On payment of that sum, Stapleford would release a first legal charge which it held over the interest of Mr Kearney in certain Anglo bonds, it is claimed.

Stapleford now alleges that, in breach of the express terms and conditions of the deed of settlement, Mr Kearney did not disclose at the time of the execution of the settlement, that he was allegedly in the process of executing a transaction to dispose of the bonds for €6m.

Stapleford says it first wrote to Mr Kearney - of Bedford House, Bedford Street, Belfast - in July of this year informing him of the alleged breach and asking for a written proposal in relation to payment of the alleged outstanding liability of just over €16m.

Mr Kearney, it said, did not respond to the letter and alleges he failed or neglected to pay the €16m or any sum.

Yesterday Mr Justice Brian McGovern admitted the case to the commercial list.

The case will come back to court next February.

Irish Independent

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