Kelly has difficulty repaying €17m

DEVELOPER SIMON Kelly has told Wicklow District Court that his income of €80,000 makes it “very difficult” to make a “meaningful difference” to a debt of €17 million he owes to ACC Bank.

ACC Bank was before the court looking for an instalment order against Mr Kelly, The Old Rectory, Dunganstown, who owes the bank €17,163,913.44 following two High Court judgments.

The court heard that since the two judgments, one on May 28th, 2009, and one on April 27th, 2010, “no payments whatsoever had been received”.

Mr Kelly’s solicitor applied to Judge Murrough Connellan to have the application heard in private as “it may be commercially sensitive”. Judge Connellan refused the application.

Under cross-examination from Rossa Fanning for ACC, Mr Kelly, son of property developer Paddy Kelly, said he had an income of €80,000, yet didn’t have a personal bank account in Ireland. Some of his income came from Red Quartz while some came from a management company in which he was involved.

He said he had a credit card with Bank of Ireland and had an AIB bank account which was used for rent collection for five properties he had in Liverpool.

He said he had outgoings of €120,000 per year, adding that while his wife had four properties she had no savings.

The court heard Mr Kelly has five children and he paid school fees of €27,000 per year.

Mr Fanning asked why Mr Kelly was not making any “provisions for payments of debts to creditors” and Mr Kelly said the loan of €17 million was “not my only debt” and that he found “it difficult to see how I’m being singled out”.

“It is very difficult on my income to make a meaningful difference to a €17 million debt,” he said, adding it was “difficult to deal with the large collapse of my property business”.

He said he was in a position to make repayments of €100 per month, adding he is in arrears with his mortgage while his involvement was National Asset Management Agency (Nama) was heading towards €200 million.

Mr Kelly said he received no income from Nama. His solicitor said Mr Kelly’s relationship with Nama was private. Mr Fanning said he was just asking if Kelly received an income from them.

Mr Kelly said he met Nama representatives twice last year and submitted a business plan to them in respect of loans transferred to the agency. This business plan included an income for Mr Kelly, but he said he was still “in limbo” and had no idea if the plan would be approved.

Following a break to examine Mr Kelly’s statement of means Judge Connellan made no order due to lack of funds.