Kellys failed to repay €2m

PROPERTY DEVELOPER Paddy Kelly and his son Simon have had a €2 million judgment entered against them at the Commercial Court over failure to repay a bank loan.

The Irish branch of Investec Bank (UK) Ltd had sought the judgment order under guarantees relating to a loan advanced by it to help acquire the 40ft Bar Restaurant, The Pavilion, Royal Marine Road, Dún Laoghaire, Co Dublin, and allegedly drawn down by the defendants in June 2007.

The bank claimed the loan plus any accrued interest and costs was repayable on January 1st last but had not been repaid.

The proceedings were admitted to the Commercial Court last week and adjourned to yesterday when Mr Justice Peter Kelly was told the bank had just received a letter indicating the defendants were not objecting to judgment against them.

Mr Justice Kelly entered judgment in the sum sought of €2,035,785, plus interest.

Last month, ACC Bank secured orders against Mr Kelly and his three children requiring them to pay some €16 million arising from guarantees over property and other loans.

A stay was placed on registration or execution of those judgment orders pending the outcome of claims that the bank’s handling of various issues exacerbated the Kellys’ financial difficulties and prevented them reducing their indebtedness.

Those proceedings were against Paddy Kelly, Clonmore, Shrewsbury Road, Dublin; Simon Kelly, The Old Rectory, Dunganstown, Co Wicklow; Christopher Kelly, Clarion Quay Apartments, IFSC, Dublin; and Emma Kelly, Harcourt Terrace, Dublin 2.

Most of the €16 million claim relates to guarantees allegedly given by the Kelly defendants over loans of late 2007 to Pressaro Ltd, with registered offices at Lower Baggot Street, Dublin, to buy what is known as the Cablelink/NTL property at Pembroke Place, Ballsbridge.

Paddy Kelly previously consented to a court order for judgment for €6.1 million against him personally over failure to repay other loans advanced by ACC.

The €6.1 million judgment related to several loans advanced by ACC, including a €4.87 million loan of March 2005 relating to construction of 62 aparthotel units at the Clarion Hotel, Liffey Valley, near Blanchardstown in Dublin.