BofI fails to secure claim on London building

BANK OF Ireland has failed to secure a legal claim against an office building in London’s Canary Wharf previously controlled by property investor and solicitor Brian O’Donnell and his wife.

The High Court in London yesterday rejected an application by the bank to secure a charge over shares in Hibernia (2005), the owner of 15 Westferry Circus, in its pursuit of Mr O’Donnell and his wife Mary Patricia over debts of €75 million.

Chief master Winegarten of the London court dismissed the bank’s application to register a charging order over the Canary Wharf building.

Counsel for the O’Donnells had argued the bank had attempted to steal a march on the couple’s other creditors in breach of the rule where all unsecured creditors are treated equally in bankruptcy proceedings initiated by the O’Donnells in London.

A spokesman for Bank of Ireland declined to comment. The O’Donnells, of Gorse Hill, Vico Road, Killiney, Co Dublin, also had no comment.

Mr O’Donnell had claimed in the Irish Commercial Court that the bank’s action had caused “absolute havoc” for his Vico Capital property business, scuppering a refinancing of £130 million (€160 million) of debt that fell due on the building earlier this month. Morgan Stanley has taken control of the building as a result.

The O’Donnells are embroiled in litigation with the bank in the Irish court over what Mr Justice Peter Kelly has described as “alarming” discrepancies between statements of assets submitted by the couple in March 2011 and February 2012.

Mr O’Donnell had previously indicated to Bank of Ireland that the Canary Wharf building was 100 per cent owned by himself and his wife but recently disclosed that he was the sole shareholder of Hibernia (2005) and that he held the share in trust for his son, Blake.

The bank indicated to the court that it was “very likely” to challenge the O’Donnnells’ application for bankruptcy in Britain and was “actively considering” applying to the Irish courts to have the couple declared bankrupt here.