ANGLO IRISH Bank is seeking to halt an action in which an Isle of Man businessman is suing former Irish rugby coach Pat Whelan and another Limerick businessman for £12 million (€13.8 million) in connection with a loan for the proposed redevelopment of the Odeon cinema site in London.

Anglo argues it has a priority claim related to the loan and wants an injunction preventing businessman Frank Woods proceeding with his Commercial Court summary judgment claim against Mr Whelan, Hollybank, O’Connell Avenue, Limerick, and Patrick Chesser, Rossio, Newcastle, Castletroy, Co Limerick.

The bank’s application will be heard by Mr Justice Peter Kelly in the Commercial Court next week.

Mr Woods, Majestic Apartments, Onchan, Isle of Man, is suing Mr Whelan and Mr Chesser over their alleged failure to honour an agreement to provide securities related to a £10 million loan given for the redevelopment of the site on London’s Leicester Square.

Both defendants are directors of Callerview Properties Ltd, Steamboat Quay, Dock Road, Limerick.

Mr Woods claims that under a loan agreement of September 26th, 2007, he advanced a £10 million loan to Callerview for the Odeon site redevelopment. Under a further agreement of September 29th, 2007, referred to as the priorities agreement, he claims he agreed with Callerview and Anglo Irish Bank that the £10 million loan would be subordinated to existing banking facilities provided by Anglo to Callerview based on a facility letter of February 21st, 2007. That priorities agreement is no longer in effect, he claims.

As security for the loan, it is alleged Callerview executed a fixed charge over its assets at Ennis Road Retail Park, Limerick, it being second to one in Anglo’s favour. Callerview also allegedly agreed to arrange for the defendants to provide an equitable charge over their shares in Callerview.

It is further claimed both defendants provided personal guarantees as loan security. Mr Woods claims his £10 million loan, plus £2 million interest, was repayable on September 30th, 2008, but Callerview failed to repay it.

He claims the defendants agreed in November 2008 to provide him with a charge over their shares in two Luxembourg firms in which they have a substantial stake if he did not call an “event of default” under the loan agreement or make a demand under the personal guarantees. He claims the defendants failed to complete that charge.

In its proceedings, Anglo claims Mr Woods’s action breaches the bank’s rights under the priorities agreement of September 2007.

Anglo claims it is defined in that agreement as the “senior creditor” and all monies owed by Callerview to it constitute the “senior debt”, while Mr Woods is defined in the agreement as the “junior creditor” and his is the “junior debt”.

The bank claims its solicitors wrote to Mr Woods asking him to discontinue the action but he had refused.