Bank seeks €1.51m judgment order against former CEO of health care company
A bank is seeking €1.51m summary judgment orders against the former CEO of a health care company.
The amount represents the maximum allegedly due under Mark Gordon's limited guarantees concerning loans advanced to the firm.
Mr Gordon's liability under guarantee arises because the company has failed to repay some €6.02m, Bank of Ireland claims.
The bank has initiated proceedings against Mr Gordon, Glen Road, Hollywood, Belfast, arising from unpaid loans advanced to VFM Healthcare Ltd, which owned and operated St Francis' Private Hospital at Ballinderry, Mullingar.
A receiver was appointed to the company in April 2014.
Mr Justice Brian McGovern agreed to transfer the proceedings to the Commercial Court today.
After being told Mr Gordon argues he has a defence to summary judgment and the parties had agreed directions for exchange of legal documents, the judge returned the matter to April.
In its action, the bank claims it advanced some €4.8m to the company under a commercial loan facility of July 2012 and in February 2013, advanced a further facility of some €737,000.
An additional €950,000 was advanced in April 2013 via a temporary increase in the company's credit car facility, it is alleged.
Mr Gordon, the bank claims, had in January 2011 and July 2012 entered into guarantees of the liabilities of the company up to a maximum €1.512m.
The company later encountered financial difficulties and underwent a reorganisation and investment from an entity known as the Steinberg Trust, the bank said.
Mr Gordon had fallen ill in September 2013 and ceased to be actively involved in the day to day management of the company from then but continued to be employed as CEO, the bank said.
Mr Gordon resigned as a director of the company in March 2014.
At the same time, the Steinberg Trust appointed two non-executive directors as a consequence of an adjusted voting hierarchy under which it acquired 50.1pc of the voting rights while maintaining a 10pc shareholding in the group, the bank said.
A business review was also undertaken by KPMG and Mr Gordon had given assistance in that regard, the bank said.
Notwithstanding the re-organisation, the company later defaulted on its repayment obligations, leading to the bank issuing a demand in April 2014 for repayment of some €6.02m, it is claimed.
A receiver was also appointed and the management of the company co-operated with that appointment, it said.
The bank said the €6.02m sum remains unpaid and, as a result, some €1.512m is due from Mr Gordon under his guarantees, it is alleged.
Repayment of the €1.512m was demanded last October and remains due and owing, the bank claims.