Promontoria seeks €4.5m judgment relating to former Anglo loan

Loan held by Norc Partnership relates to development of 16 apartments in Co Wexford

A fund is seeking judgment for €4.5 million against members of a partnership over default on repayment of a loan provided for purposes including property development.

Promontoria (Gem) DAC, Haddington Road, Dublin, is suing businessmen Ciarán Redmond, Lackabeg, Co Carlow; Michael O'Neill, Market Square, Bunclody, Co Wexford; Peter Crean, Kildavin, Bunclody; and businesswoman Clody Norton, Newtownbarry House, Bunclody, all trading as the Norc Partnership.

The action arises out of a €3.89 million loan made by Anglo Irish Bank to the partnership in 2005, which was later taken over by the National Asset Management Agency and sold on in January 2017 to Promontoria.

The loan was for purposes including €2 million to fund equity release of the partners and €1.87 million to cover costs of the construction of 16 apartments at Mill Race, Bunclody.


Repayment demanded

Last June, with the loan now standing at some €4.5 million, Promontoria demanded repayment. When that was not made, it appointed a receiver over the 16 Bunclody apartments.

Lisa Burns, an associate director of Link ASI (formerly Capital Asset Services), which provides asset-management services for Promontoria, said in an affidavit that after acquiring the loan Promontoria sought to enter into discussions with all the defendants regarding their obligations.

However, she said no resolution was reached as not all the defendants were willing to engage.

On Monday, barrister Ted Harding, for Ms Norton, opposed an application by Promontoria to have the case entered into the fast-track Commercial Court list.

Mr Harding disputed there was any urgency to the case meriting its inclusion in the fast-track court. He said Promontoria seemed to be adopting a “year zero” approach to the date when it acquired the loan although there was a history to it before Nama sold it on.

Mr Justice Brian McGovern said he was satisfied to admit the case to the list.