Directors liable for €5.8m loan, rules court

Two directors of what was once the country's second- largest school building company are personally liable for loans of €5

Two directors of what was once the country's second- largest school building company are personally liable for loans of €5.38 million made to their firm to build an apartment development in Galway city, the Commercial Court has ruled.

Gerard Dillon and Patrick Corrigan, directors of Cordill Construction Ltd (in receivership), had disputed ACC Bank's claim they were liable for some €5.38 million outstanding on loans to the company in 2006/07 for the development at the Claddagh, Galway.

Both directors claimed they provided those guarantees under duress as, if they had not, a receiver would be appointed to the firm with the loss of about 50 direct jobs and 200 or more jobs on site.