Anglo Irish Bank sues O'Regan for €37.4m

BUSINESSMAN HUGH O’Regan is being sued at the Commercial Court for €37.4 million by Anglo Irish Bank over personal borrowings and guarantees given over company loans.

Rossa Fanning, for Anglo, said the claim relates to personal borrowings of Mr O’Regan’s and personal guarantees given by him over the borrowings of two companies – Thomas Read Holdings (TRH) and Clubko Ltd – now in liquidation.

Thomas Read Holdings was involved in the operation of hotels, including the Morrison in Dublin, and property development. A subsidiary was leading the redevelopment of Kilternan Hotel and Country Club.

Mr O’Regan initially made his name building one of Dublin’s largest chains of pubs in the 1990s before selling that business on in 2005 to a consortium involving developer Paddy Kelly. Admitting the case to the Commercial Court, Mr Justice Kelly remarked much of the claim – more than €22 million – appeared to concern a company, Clubko Ltd, a wholly-owned subsidiary of TRH, and its “alleged philanthropic aims”.

Clubko was the company behind the planned development of a property at 8 St Stephen’s Green into a gentlemen’s club.

The businesses collapsed in August after an investor withdrew during a period of examinership. It was stated at that time that Mr Mr O’Regan owed Anglo Irish more than €80 million in personal and company borrowings.

Bernard Dunleavy, for Mr O’Regan, said companies appeared to have changed names and then changed back again and this appeared to have caused some confusion for the bank.

The judge was told the summary judgment hearing will take a day and will involve legal issues related to the appointment of a receiver.

The claim relates to Mr O’Regan’s personal borrowings under a loan facility advanced by Anglo and his guarantees and indemnities related to the liabilities of Thomas Read Holdings and Clubko to Anglo arising under facilities dating back to 2006.

By December 4th, 2007, Anglo claims it had offered loan facilities of some €10.8 million to Mr O’Regan involving some €7.85 to renew a facility and €2.95 to refiance debts from Ulster Bank and Permanent TSB in relation to the Thomas Read and Oak bars and 10 apartments overhead.

It claims the facility was fully drawn down on December 18th, 2007, and had matured in late November 2008 but Mr O’Regan had failed to repay the sums due. In July 2009, Anglo demanded repayment of an €11 million sum outstanding but this was not repaid. It claims a further €3.7 million is due under facilities provided to Thomas Read Holdings.

A sum of €22.5 million is also allegedly due under loans provided to Clubko Ltd, of which Mr O’Regan is a director. Anglo appointed a receiver to Clubko in July last and an official liquidator was later appointed.

Mr Justice Peter Kelly yesterday fixed November 6th next for the hearing of the bank’s application for summary judgment for €37.4 million against Mr O’Regan, Park Avenue, Sandymount, Dublin, whose business interests include the Thomas Read group of pubs which is now in liquidation.