Anglo secures orders of €20m against firms

ANGLO IRISH Bank has secured judgment orders totalling more than €20 million arising from loans and guarantees of the liabilities of two property companies, whose proposed schemes included a “tax-driven” hotel and a park-and- ride project at the Cliffs of Moher.

Mr Justice Peter Kelly at the Commercial Court granted judgment yesterday for €10.4 million against builder John Flanagan, Doolin, Co Clare; €6.4 million against builder Gerard Lillis, Kilrush, Co Clare, and €3.35 million against architect Ted Joyce, Ballina, Co Tipperary.

The bank’s claim arose mainly from the liabilities of Liscannor Properties Ltd and Atlantis Development Ltd and guarantees allegedly provided by the defendants over those liabilities.

Anglo previously appointed a receiver over properties of the companies.

The orders were made on consent of the three who had initially opposed the bank’s claim on grounds, including that Anglo effectively acted as partner and co-venturer with the companies.

All three had also counter-claimed over alleged breach of contract and agreements by the bank.

It was also claimed the bank had made representations that various loans, including for the hotel and park-and-ride facility, would involve the bank’s recourse being limited to property and having no recourse to investors.

It was claimed the bank’s later refusal to make finance available on a non-recourse basis meant the defendants lost the benefit of the projects and suffered serious economic loss and damage. It was also claimed the bank had represented it would not seek performance of the loans until the park-and-ride facility was operational.

Mr Flanagan also alleged Anglo had induced him into borrowing €150,000 from it to invest in the Jaguar investment fund operated by executives of the bank and to invest about €80,000 of his own money in the same fund.

Anglo had denied the claims.