DEVELOPER PADDY Kelly has consented to judgment orders for more than €2.7 million against him over unpaid loans advanced by Allied Irish Banks, including a loan to buy two penthouse suites adjoining the Clarion Liffey Valley Hotel in Dublin.
At the Commercial Court yesterday, Alison Keirse, for AIB, said Mr Kelly was consenting to judgment in the amounts sought arising from three loans advanced by AIB.
Mr Justice Peter Kelly entered judgment for a total of €2,782,317 against Mr Kelly, Clonmore, Shrewsbury Road, Dublin, who was not in court but was represented by a solicitor.
The loans included an August 2008 €1.39 million facility to restructure existing debt of two companies, Fabline Ltd and Latest Venture Ltd, and to take out personal debt of Mr Kelly.
That loan was later extended to include a sum of €162,194 owed to AIB Finance and Leasing Ltd and also to take out personal debt of Mr Kelly.
By January 2009, Mr Kelly had fallen into arrears and, despite requests, had failed to clear balances, AIB claimed. It terminated that agreement in September last and demanded repayment.
The second facility was for €400,000 in connection with the purchase of two penthouse suites adjoining the Liffey Valley Hotel and €340,000 in connection with equity release against costs incurred in the hotel project.
Mr Kelly agreed to execute a mortgage over each of the penthouse suites in favour of AIB, the bank added. Some €751,000 was due and owing under both facilities but no repayment had been made.
The third facility related to a sum of $840,000 (€573,000) advanced to Mr Kelly for the purpose of being operated as a loan account with a sanctioned limit in that same sum. AIB claimed Mr Kelly was in arrears on that account by September last and had yet to clear it.
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