Anglo seeks €26m from Murtagh

ANGLO IRISH Bank is seeking judgment for some €26 million arising from personal loans made to insolvent businessman Brendan Murtagh, whose total liabilities are estimated at some €353 million.

A solicitor for Mr Murtagh told Mr Justice Peter Kelly yesterday it would make more sense for all, including the taxpayer, if State-owned Anglo waited until next December to make its claim as the sum due was likely to be increased by an additional €6 million then arising from a potential capital gains tax liability.

Mr Justice Kelly said it was “a first” for a defendant to argue that a bank was understating its claim.

Mr Murtagh’s solicitors said the court was “painfully aware” of his position in relation to his resources and the bank would not be prejudiced if the matter was adjourned so as to avoid two separate applications being brought.

Counsel for Anglo said it was true there was a potential €6 million capital gains tax liability but the bank’s concern was to protect its position. Anglo is seeking repayment of €23.4 million and £2.1 million in personal loans made to Mr Murtagh between 1999 and 2009 for commercial dealings in shares and properties.

The bank said it had given Mr Murtagh time to restructure his interests in the hope he might be able to deal fully with the liability, but no repayments had been made since March. The bank at that time also began receiving correspondence about other proceedings by private investors against Mr Murtagh. It became apparent that the prospect of his being able to deal with Anglo’s loans had receded in the context of his other financial difficulties.

Mr Justice Kelly noted that he had, in the recent separate proceedings where investors were pursuing Mr Murtagh, Dunheeda, Kingscourt, Cavan, for €28 million, made orders for the sale of shares held by Mr Murtagh in Kingspan and other companies to part-satisfy the investors’ claim.

That appeared to be “the end of the road” as far as Mr Murtagh’s assets were concerned, the judge remarked. In those circumstances, Anglo would not be prejudiced by giving Mr Murtagh a two-week adjournment to put matters on affidavit relating to the liability in this case, he said.