AIB obtains €9.3 million orders against Galway businessmen
Court rules in favour of bank for borrowings by Tom and John Nestor
AIB has obtained €9.3 million judgment orders on consent at the Commercial Court against Galway businessmen Tom and John Nestor for borrowings by the pair. File photograph: Bryan O’Brien/The Irish Times
Allied Irish Banks (AIB) has obtained €9.3 million judgment orders on consent at the Commercial Court against Galway businessmen Tom and John Nestor. The bank also secured orders allowing it to enforce the judgment across the EU.
Judgment was granted jointly and severally against Tom Nestor, Averard East, Taylor’s Hill, Galway and John Nestor, Gleann na Trá, Sandy Road, Galway.
In court documents, AIB official Graham Kelly said that in circumstances where properties held as security for the defendant’s personal debts were of key strategic importance to their trading businesses, the bank had “exhausted all avenues” in trying to reach a consensual resolution with the defendants’ regarding their borrowings.
Mr Kelly said that included offering them “numerous” opportunities to submit a satisfactory restructuring proposal.
Mr Kelly said that the bank had only received partial information about some matters and in July 2014 received unsworn statements of affairs.
In July 2014, the bank had demanded the repayment of some €9.2 million and also appointed receivers over certain mortgages and charges granted by the defendants. The appointment related to two supermarkets secured in favour of the bank, Mr Kelly said.
The court heard how, after that, the defendants re-engaged with the bank and further efforts were made to reach a consensual resolution.
Mr Kelly said that the bank entered negotiations in good faith, which unfortunately broke down in late 2014, partly due to the defendants’ actions in frustrating the receivers’ collection of rents, but also because the defendants had concealed certain assets in which they held a beneficial interest.
A final meeting was held on March 2nd last.
Mr Kelly said that the bank decided to bring these proceedings in light of the defendants’ various offers, their concealment of personal assets and liabilities, including certain deposit funds held abroad, property in Florida and a contingent liability of some €3 million held as security by the National Assets Management Agency.
Mr Kelly said that the proceedings were also brought due to the failure of the defendants to cooperate with the receivers and that, with interest, some €9.3 million was due and owing.