Individuals to agree to orders over €180m purchase of bank HQ

A NUMBER of businessmen, who include Patrick Shovlin and hotelier brothers Anthony and Patrick Fitzpatrick, have told the Commercial Court they will either consent, or not object, to judgment ranging from €483,000 to €7.4 million against them arising from the €180 million purchase of Bank of Ireland’s Dublin headquarters.

Developer Derek Quinlan was previously ordered to repay €6.5 million to the Bank of Scotland, as agent for a syndicate of other lenders, in proceedings seeking repayment of some €25 million relating to the sale of the property, now said to be worth much less than €180 million.

The loans were issued by Bank of Scotland, as agent for the syndicate, to a number of borrowers in 2006 to buy the Bank of Ireland premises. Quinlan Private was the borrowers’ agent for the purposes of the loan agreement which provided that recourse for repayment, subject to stated exceptions, was limited principally to the property.

The bank claims that not withstanding the general limited recourse, the agreement also provided for certain recourse to the borrowers and their assets.

The bank said about €183 million was due in June 2011 when it issued demands to the borrowers for payment within seven days of their portion of the interest payable, plus payment of various amounts allegedly due under resource provisions.

After that was not paid, the bank issued its action and, in December, summary judgment was entered in his absence against Mr Quinlan of Manfred Road, London. Summary judgment for €827,859 was also entered on consent against NBH Investments Ltd (formerly Gowan Securities Ltd), Herbert Avenue, Merrion Road, Dublin.

The summary proceedings against the other defendants came before Mr Justice Peter Charleton yesterday and he reserved judgment.

Three of the defendants, now said to be living in London, are Patrick Shovlin, Kerrymount Avenue, Foxrock; Patrick Fitzpatrick, Cookstown, Enniskerry, Co Wicklow; and Anthony Fitzpatrick, Brennanstown Road, Cabinteely, Dublin.

The bank sought summary judgment for €7.4 million against Mr Shovlin and for €3.7 million each against both Fitzpatricks.

Their counsel, Doireann Ní Mhuircheartaigh, said Mr Shovlin and Anthony Fitzpatrick were prepared to consent to judgment in those sums while Patrick Fitzpatrick was not objecting to judgment for €3.7 million. All three contended the bank was not entitled to claim additional interest, ranging from €500,000 to €1 million, on the principal, she said.

The bank has also sued Ronan Ó Caoimh, Glencarrig House, Delgany, Co Wicklow, for €1.4 million. Raymond Delahunt said his client was prepared to consent to judgment if a stay on entry, execution and registration was granted for about six months. The intention was that an arrangement would be entered into with the bank and judgment would ultimately not be entered, he said.

Rory Mulcahy, for Peter Lavelle, Croselis Square, St Margaret’s, Twickenham, who is being pursued for €483,696, said his client would consent to judgment on the basis of a three-month stay.

Patrick Mooney, Celbridge Road, Maynooth, Co Kildare, who is being pursued for €1.49 million, objected to summary judgment and contended he had a defence entitling him to a full hearing.

His solicitor argued that the bank’s claim was premature as its recourse was limited to the property which it had neither sought to sell nor have valued.