KBC Ireland pursues borrower for €6.2m

A bank is pursuing a businessman for €6.2 million arising from loans related to the acquisition and development of units at Gorey Business Park in Co Wexford.

The claim by KBC Ireland against James Osborne, Fort Road, Gorey,  is part of an "enforcement strategy" that the bank had "reluctantly" decided to follow, barrister Rossa Fanning, for the bank, told the Commercial Court.

The bank had also appointed a receiver but Mr Osborne had served a notice that sought to unilaterally leverage a €1 million fine for trespass, Mr Fanning said.

Mr Osborne, representing himself, told Mr Justice Brian McGovern he had a defence to the claim. While it was factually correct he had borrowed money from the bank, its experts and project managers had failed to do their work professionally and this had led to a fire officer coming in and his having to pay some €1.2 million “to put matters right”, he said.

Commercial Court The judge

said he would transfer the case to the Commercial Court and list the summary judgment application for hearing later this month.

In court documents, the bank said it had issued various loans to Mr Osborne on dates from 2002. Various facilities had been repaid and the bank also agreed to restructure certain facilities.

The bank said it had also over a number of years asked Mr Osborne to provide additional security over that part of his interest in the business park which was not secured but the additional security was not forthcoming.

It also appeared the business park generated annual rental income of some €603,000 but that was not being paid to the bank despite conditions in the facility letters, the bank said.

Repayments

Mr Osborne had made repayments of some €25,500 for 2014 and to date in 2015 despite the value of the rental yield, the bank said.

Last September, the bank made formal demand on Mr Osborne for immediate payment of some €6.2 million, being the total sum owed to it, it was stated.