Hotel owner says he fears businesses will fail if outstanding loans sold
The owner of two boutique hotels in London’s Kensington area fears his business will fail if receivers appointed by Irish Bank Resolution Corporation are permitted sell the properties’ more than €21 million in outstanding loans, the High Court heard yesterday.
Jalaluddin Kajani, an Irish citizen who came here from Pakistan in 1980 and later set up a property company, Supergrace Ltd, claims the two hotels and another commercial property in Putney, London, are at the core of the business run by his wife and family.
He says he has sold other properties in seeking to meet the bank’s repayment demand and, if the three assets are sold, the company will be unable to continue as a going concern.
Mr Kajani and the company yesterday secured an injunction restraining IBRC, formerly Anglo Irish Bank, and receivers Jonathan H Gershinson and Ania Packman taking any steps to deal with the three properties, including selling them.
Mr Justice Peter Charleton said he was conscious the application was being made on an ex parte (one-side only) basis but would grant a limited injunction.
The judge noted that Mr Kajani complained he had found himself in difficulties because, in order to get refinancing, he had to switch his loans from variable interest rate repayments to a fixed rate of just under five per cent even though rates subsequently fell to between two and three per cent In an affidavit, Mr Kajani said he was put under duress in 2007 and 2008 by the bank to accept unsuitable terms for refinancing.