Fund seeks €16m from developer Patrick Kearney

A fund is pursuing Northern Ireland developer Patrick Kearney for €16 million in summary judgment orders at the Commercial Court.

The dispute centres on an agreement the businessman entered into three years ago over bonds in Anglo Irish Bank Corporation.

The proceedings by Stapleford Finance Designated Activity Company, Victoria Buildings, Haddington Road, Dublin, against Mr Kearney, Bedford House, Bedford Street, Belfast, were admitted on Monday to the fast-track Commercial Court by Mr Justice Brian McGovern.

Settlement

It is claimed, under a deed of settlement on November 14th, 2014, Mr Kearney acknowledged he was indebted to Stapleford in the amount of €19.2 million arising from certain loan facilities entered into and/or guaranteed by him with Anglo.

The loans had been assigned by Anglo to Stapleford.

It is claimed Stapleford agreed to accept €2.3 million in satisfaction of Mr Kearney’s outstanding liability and, on payment of that sum, Stapleford would release a first legal charge which it held over the interest of Mr Kearney in certain Anglo bonds.

Stapleford alleges, in breach of the express terms and conditions of the deed of settlement, Mr Kearney did not disclose to Stapleford, at the time of the execution of the settlement, he was in the process of executing a transaction to dispose of the bonds for €6 million.

Stapleford says it first wrote to Mr Kearney in July last informing him of the alleged breach and seeking a written proposal in relation to payment of the alleged outstanding liability of just over €16 million.

It claims Mr Kearney did not respond and has failed or neglected to pay the €16 million, or any sum, to Stapleford.

In an affidavit, Stapleford director Donal O’Sullivan said the deed of settlement was entered into on November 14th, 2014 following negotiations over a number of months.

Security

He said the deed provided that security held by Stapleford over certain subordinated Anglo bonds was to be released following the payment of the €2.3 million.

Security on the bonds was released on payment but Stapleford subsequently learned from national media reports, the bonds had sold for €6 million, he said.

Mr Kearney had failed or neglected to pay €16.8 million or any sum to Stapleford in response to the demand for payment made on September 8th, 2017, he said. Having regard to the seriousness of the matter, Stapleford was at a loss as to why Mr Kearney would fail to substantively respond to any of the letters and emails sent since last July.

Stapleford had exercised its lawful entitlement to terminate the deed of settlement and enforce its rights to seek judgment against Mr Kearney for a total of €16.8 million, he added.

The case will come back before the court next February.