ACC seeks judgment for €16.2m loan

ACC BANK will apply this Friday for summary judgment orders for more than €16.2 million against two businessmen over an alleged failure to repay property loans.

The action against Leo Mohan, Lansdowne Terrace, Shelbourne Road, Dublin 4, and Emmet Memery, Northumberland Road, Dublin 4, was transferred to the Commercial Court list this week by Mr Justice Peter Kelly.

The judge was told the bank, after initiating the legal proceedings, had been approached by an insolvency practitioner acting for the men who said proposals were being prepared.

James Doherty, for the bank, said it had held off to allow proposals be made but none were and it was with some regret the bank now had no option but to seek summary judgment orders.

Counsel for the defendants said there had been talks between the sides and some proposals had been put to ACC. Pressed by the judge as to whether there was a defence to the bank’s application, counsel said there appeared to be no defence “at the moment”.

The case relates to a €13.3 million loan advanced to both men in November 2007, some €9.5 million of which was to refinance a debt due to Allied Irish Banks for part-funding the purchase of a 4.1 hectare site at Jamestown Road, Finglas, with the remaining €3.8 million by way of equity release for investment purposes.

That loan was for 18 months and was secured by a first legal mortgage over the Finglas property, ACC said. It claims the loan was drawn down by the defendants about December 19th, 2007, and they had each drawn down a further €51,988 about January 9th, 2008, bringing the total sum drawn down to €13,145,000. That loan expired in June 2009.

A second loan facility of some €1.41 million was offerd to both defendants in March 2008 to fund fees associated with the preparation of plans for the Finglas property, ACC claims. Those monies were drawn down in April 2008 and the loan expired in June last.

ACC says it demanded repayment of both loans on July 6th last but none had been made. It is now seeking summary judgment for €16,207,819, plus interest.