B of I pursues couple for €27m

A couple are being pursued for €27 million by Bank of Ireland at the Commercial Court.

The bank's case for the summary judgment against James and Brigid Treacy, Butlerstown House, Kilotteran, Co Waterford, arises from a loan facility issued in connection with the development of Butlerstown Retail Park in Co Waterford.

It is alleged the defendants failed to make required periodic payments of principal and interest due from June 2014 and some €27 million is due and owing.

Frank Beattie, for the defendants, said they wanted time to outline a defence on grounds including that monies from an anchor tenant were to go towards discharging capital and interest. Mr Justice Brian McGovern agreed to transfer the case to the Commercial Court and has returned it to next month.

In its action, the bank claims it was in correspondence with the defendants and their advisers since March 2013 concerning their liability under the facility. That correspondence began because the anchor tenant at the retail park, B & Q Ireland, was placed under court protection while another significant tenant, TK Maxx had previously departed.

A difference of opinion arose between it and the defendants as to how compensation payments from B&Q Ireland and TK Maxx were to be treated, the bank claims. While monthly capital and interest repayments were paid up to May 2010, the defendants had failed to meet those obligations since June 2014, it is alleged.

The bank said it had exercised forbearance for a period and had the comfort of knowing the defendants had monies on deposit which would go some way towards discharging their arrears. A proposal from the defendants received in September was not acceptable and also revealed a number of assets transfers of concern to the bank, it is claimed.

A demand for repayment then issued on September 19th last, a receiver was appointed five days later and the bank later initiated the proceedings.