Kellys in €16.5m settlement with ACC

JUDGMENT ORDERS for more than €16.5 million have been entered against property developer Paddy Kelly and his sons Simon and Christopher under a settlement with ACCBank of legal proceedings over unpaid loans.

An €16 million judgment obtained last year against Mr Kelly’s daughter Emma – which was stayed pending the outcome of proceedings – was vacated under the settlement. ACC has also agreed not to move against the Dublin city home of Christopher Kelly as part of its efforts to execute judgment.

The settlement terms were presented to Mr Justice Peter Kelly at the Commercial Court yesterday by Damian Keaney, for the Kellys, and consented to by Rossa Fanning, for ACC.

The proceedings involved Paddy Kelly, Clonmore, Shrewsbury Road, Dublin; Simon Kelly, The Old Rectory, Dunganstown, Co Wicklow; Christopher Kelly, The Mews, Lad Lane, Dublin 2; and Emma Kelly, Harcourt Terrace, Dublin 2.

Last May the judge found ACC was entitled to judgment against Mr Kelly and his three children, requiring them to pay €16 million arising from guarantees over property and other loans.

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

Most of the €16 million claim related to guarantees allegedly given by the Kelly defendants over loans in late 2007 to Pressaro Ltd 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.

Yesterday, Mr Keaney said the issues between ACC and his clients had been resolved on terms including an order striking out the claims by his clients against the bank.

Mr Keaney said the settlement effectively means the liabilities of Emma Kelly, her mother Maureen and John Kelly were being transferred to Paddy, Simon and Christopher Kelly.

The settlement also included an acknowledgement by Pressaro that it owes some €17 million, plus continuing interest, to ACC.