Sunday 15 September 2019

AIB seeking €25m judgment against 14 business people


Tim Healy

AIB is seeking summary judgment for sums totalling around €25m against 14 business people over alleged default on loans which they had guaranteed.

The 14, along with a 15th man who has already consented to judgment for €1.68m, gave personal guarantees of between €170,000 and €3.8m on loans given to a company in 2008.

AIB says the 15 were liable on a several basis with limited individual liability. 

The 15 are shareholders in Blagnac Investments Ltd, an Irish registered company which holds the entire issued share capital in a Luxembourg registered company called Blagnac Investments Sarl. 

This company in turn owns the entire share capital in 2 Rue Dieudonne Costes SAS, which is a company incorporated in France.

The money was loaned to the French registered company which was guaranteed and indemified by the 15.

The loan was due to be repaid by September 29, 2013 but the borrower (the company) defaulted and the bank demanded repayment of a total of just over €27m, inclusive of interest,  by July 20, 2015,  AIB manager Olga Gusak said in an affidavit.  

Despite demand letters, the defendants failed, refused or neglected to repay, she said.

The 14 are:  Seamus O'Mahony, Old Chapel, Bandon, Co Cork (who the bank says has a liability for around €2.3m); Tom Kingston, Corran, Waterfall, Cork, and John Gaffney, Ballyleigh, Waterfall (who have joint liability for €3.89m); Jeremiah Galvin, Lower Muckross Road, Killarney, Co Kerry (€1.69m liability); Chris and Marina Kay, Dromderrig, Kinsale, Co Cork (€947,367); Barry Harte, Main Street, Timoleague, Co Cork (€1.15m); Tim Smyth, Bridgewater, Crosshaven, Co Cork (€472,873); Sam Russell, Delford Drive, Rochestown, Cork (€472,873 also); Connor Phelan, Phelan's Pharmacy, Carrigaline, Co Cork (€1.68m); Brendan O'Shea, Rochfordstown, Waterfall, Cork (€1.68m); Mark O'Shea, Glendale Flowers, Waterfall (€1.68m also); Donal Kelleher, Belfry Heights, Bandon, Co Cork (€170,000) and Ray Reidy, Greenfields, Ballincollig, Co Cork (€674,182).

The 15th man, PJ Flynn, Castlewoods, Old Chapel, Bandon, consented to judgment against him for €1.68m in the Commercial Court Monday (Nov 2).

Mr Justice Brian McGovern entered judgment for that amount against him.

The judge was told the other defendants needed time to instruct solicitors and they were given until November 13 to file replying affidavits setting out any defence they may have to summary judgment. 

The judge entered the case against the other 14 to the Commercial Court list.

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