Commercial Court to hear action over Burlington Plaza stake sale

A dispute over €2.69 million interest allegedly owed to a financial firm by a company that sold its interest in the Burlington Plaza has been admitted to the Commercial Court.

The dispute involves Lington Development Ltd and financial fund Dengrove DAC.

Lington says it had, up to recently, owned 25 per cent of the Burlington Plaza office block in Dublin 4.

Lington assigned its interest in the property to AIB in 2007 which was taken over by the National Asset Management Agency. That interest was sold on earlier this year to Dengrove.

Injunction

Earlier this month, Lington secured a temporary injunction after Dengrove made a demand on Lington for full repayment of what was due and owing. Dengrove had also threatened to appoint a receiver over Lington’s interest in the building.

The injunction, subsequently discharged, prevented Dengrove from enforcing its security by appointing a receiver.

Lington says it has sold its interest in the property and paid more than €45 million to Dengrove.

Dengrove claims it was owed more than €47.6 million and, after interest and costs are taken into account, alleges some €2.69 million remains outstanding. Lington disputes that claim.

The matter was admitted to the Commercial Court on Monday by Mr Justice Brian McGovern.

Rossa Fanning SC, for Dengrove, and Ross Alyward, for Lington, said both parties consented to the matter being admitted to the fast-track list. The judge has adjourned the matter to June.