Friday 24 November 2017

AIB seeking summary judgment against Foxrock couple over alleged unpaid loans for around €5.5m

Stock photo
Stock photo

Aodhan O'Faolain

AIB is seeking summary judgment against a husband and wife over alleged unpaid loans for around €5.5 million.

The money owed by company directors Oliver and Stephanie Kelly, of Rosbarnagh House, Torquay Road, Foxrock, Dublin, arise out of a number of loans advanced to them by AIB between 2003 and 2010.

AIB Mortgage Bank is seeking judgment of of €778,942 while AIB Plc is seeking €4.754m from them.

The bank says it issued a demand for the repayment of the loans in December.

It claims the couple have failed, refused or neglected to satisfy its demands.

Mr Justice Brian McGovern admitted the case to the Commercial Court today.

Lawyers for the couple had opposed the bank's application to have the case admitted on grounds including that AIB had delayed in bringing the proceedings.

Joseph Lyons, a manager in AIB's financial solutions group, said in an affidavit there had been in extensive discussions with the couple with a view to restructuring their borrowings between May and December of 2015.

AIB said it offered the couple terms, but its offer was not deemed acceptable by the Kellys.

A counter proposal offered by the couple was "not sustainable, " Mr Lyons said.

Matters also came to light during the negotiations that caused them concern, he said.

It was discovered  a judgment mortgage of €1.5m had been registered against a primarily debt free asset of the Kellys by an employee or agent of theirs who had assisted them with their property portfolio over a 10 to 15 year period.

Mr Lyons said it had not been told of the proceedings, which issued in 2014, resulting in a judgement being issued in February 2015.

The Kellys did not dispute the action because they are in significant debt, he said.

The Kellys had asserted there was some money owing to the employee/agent but they disputed the amounts claimed, Mr Lyons said.

AIB was not satisfied with explanations it received in relation to this matter.

AIB was also advised the defendants are in the process of transferring part of their clothing business to Turkey. The resultant transfer of assets outside the EU remains a concern, Mr Lyons said.

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