A DEVELOPER being pursued by Anglo Irish Bank for €84 million over unpaid loans of almost twice that sum has claimed he had “easy access” to senior figures in the bank, including Seán Fitzpatrick and David Drumm, and was encouraged by Anglo to undertake massive property developments with the assurance hundreds of millions would be made available.
During 2006 and 2007, Anglo was “extremely anxious” to lend money to his property group, Michael Daly said. He was regarded as “a favoured developer” in the midwest and could pick up the phone to Anglo in Dublin and would be told to buy, Mr Daly said. His companies spent over €300 million on development projects here, and over €100 million on projects in Germany.
In 2006 and 2007, Anglo was anxious the group make more investments in Germany and Mr Drumm made it clear that funds of up to €500 million were available, he said. Anglo also targeted his group for extra borrowings of up to €150 million for various projects. Representing himself, Mr Daly of North Circular Road, Limerick, said he relied on oral assurances from Anglo executives that guarantees he provided over loans were secondary to the security taken by the bank and would not be relied upon. However, the bank failed to take proper security and its handling of securities was “a shambles”, he said.
In an affidavit, Mr Daly said one loan of €91.2 million was provided on the basis of his own guarantee, capped at €9.5 million, plus a guarantee of his partners, also capped at €9.5 million. He raised the issue of the guarantees with the bank’s senior executives a number of times and was assured they were regarded as “a formality” and Anglo would never rely on them.
Anglo now has control of the relevant assets and, in those circumstances, it was premature to be taking action against him, he said.
Maurice Collins SC, for Anglo, said it was entitled to summary judgment for €84.4 million as Mr Daly had accepted the loans and that he had signed the guarantees.
The claims by Mr Daly about his access to senior Anglo executives were not relevant to this application, counsel added.
Mr Justice Peter Charleton will on Tuesday continue hearing the application for summary judgment orders for €84.4 million.
