KINGSPAN CO-FOUNDER Brendan Murtagh is one of three businessmen against whom summary judgment is being sought for €31.5 million arising from loans given to two companies for the development of lands in Cork.
The EBS building society has brought the action against Greg Coughlan, Fastnet House, Ardbrack, Kinsale, Co Cork; Brian Madden, Outwoods, Dorea, Rathfeigh, Tara, Co Meath and Mr Murtagh, Dunheeda, Kingscourt, Co Cavan.
The proceedings were admitted to the Commercial Court this week by Mr Justice Peter Kelly and will be mentioned on Friday.
The case arises over loans provided by EBS to two companies – Ballycarney Properties Ltd and Moira Properties Ltd – both with addresses at Lapps Quay, Cork.
EBS said the monies were advanced for the purchase and development of sites totalling 32 acres at Little Island, Cork.
It is claimed all three defendants are directors of both companies and executed guarantees in June 2007 over loans totalling more than €31 million advanced to the companies.
EBS claims the deed of guarantee and indemnity expressly stipulated the defendants acted as “principal obligor” in relation to the loan facilities and not merely as sureties.
Because of the failure of both companies to repay sums due under the loan facilities, EBS had served a letter of demand on both companies in November 2008 seeking repayment of the full amount, plus interest.
In December 2008, the building society had called upon the defendants to comply with the terms of the guarantee but, despite the demands, no sums had been repaid.
EBS also claims there had been negotiations between the parties but these had not proven fruitful and proceedings were then initiated last May.
Further negotiations were held after that but with no success, the building society claims.
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