ACC seeks €16.5m over unpaid loans

ACCBANK IS seeking judgment orders for €16.5 million against two businessmen over guarantees provided by them over unpaid loans to Pressaro Ltd, an investment property vehicle used by them and others, including developer Paddy Kelly.

Judgment orders in the same amount were entered last April against Mr Kelly and his sons under a settlement with ACC of its action over the same loans.

This week, Mr Justice Peter Kelly refused ACC's application to transfer the latest proceedings against John Walsh, Plunkett Avenue, Foxrock, Dublin, and Gerard Kelly, The Crescent, Monkstown, Co Dublin, to the Commercial Court, which fast-tracks business disputes.

The case will now proceed at a slower pace through the High Court.

Mr Justice Kelly refused to transfer the case on grounds of ACC's delay in advancing it.

ACCBank had argued that the delay was due to several factors, including its separate proceedings against members of the Kelly family.

In an affidavit, Mr Walsh had argued it "ill-behoves" a bank of ACC's size and resources to move at "a leisurely pace" when it pleased and then seek to put "maximum pressure" on the defendants to secure judgment when it chose.

The case arises from loans advanced by ACC from October 2007 to Pressaro Ltd, with registered offices at Lower Baggot Street, Dublin, to finance its acquisition of the Cablelink/NTL property at Pembroke Place, Ballsbridge, Dublin.

Both defendants, with eight others including Mr Kelly and his children, Simon, Christopher and Emma Kelly, had provided guarantees to pay on demand all liabilities of Pressaro under those loans, ACC claimed.

The bank claimed €16.1 million was due and owing by Pressaro under that loan in March 2009, with daily interest accruing of almost €2,000.

ACC served a demand for payment on Pressaro on March 9th, 2009, but no payment was made.

Two days later, a demand was served on both defendants pursuant to their guarantees, but no payment was made.

Some €16.5 million remains due and owing, the bank claims.

Last April, the bank had settled proceedings against Mr Kelly, Shrewsbury Road, Dublin; Simon Kelly, Dunganstown, Co Wicklow; Christopher Kelly, The Mews, Lad Lane, Dublin, and Emma Kelly, Harcourt Terrace, Dublin.

The settlement terms involved judgment orders of €16 million obtained in May 2009 against Paddy, Simon and Christopher Kelly, being increased in each case by €544,040 to some €16.5 million.

A judgment order against Emma Kelly, plus a costs order against her, was lifted.

The settlement effectively transferred liabilities of Emma Kelly, her mother Maureen and John Kelly over to Paddy, Simon and Christopher Kelly.

It was also agreed that ACCBank could not execute judgment against the private residence of Christopher Kelly at Lad Lane.

Paddy Kelly also previously consented to a court order for judgment for another €6.1 million against him personally over failure to repay other loans advanced by ACC.

The €6.1 million judgment related to several loans advanced by ACC, including a loan of €4.87 million in March 2005 relating to construction of 62 aparthotel units at the Clarion Hotel, Liffey Valley, Dublin.