Former Smart Telecom CEO settles with IBRC over €16m in loans and guarantees

Irish Bank Resolution Corporation has broadly settled legal actions against former Smart Telecom chief executive Oisin Fanning and others arising from loans and guarantees, including a loan of more than €8 million related to his former luxury home in Co Kildare.

In one action, the bank sought judgment for some €16 million against Mr Fanning and about €8 million against his partner, Pearl Roche, a mother of four, arising from a €8.4 million loan made in 2005 to the couple related to Forenaghts House, Naas, and Mr Fanning's guarantee of a €7.25 million loan made in 2006 to Outpost Properties Ltd, a subsidiary of Smart Telecom Holdings Ltd.

Estate possession
The couple now live in London following a 2009 order, made subject to several stays, granting the bank possession of Forenaghts House, located on a 24-acre estate in Naas, over failure to keep up loan repayments.

In separate proceedings, the bank sought judgment for some €8.2 million against Outpost Properties Ltd, Northbrook Road, Dublin, and Paul Sullivan, Ballymacarney, Kilbride, Clonee, Dublin, arising from the €7.25 million loan advanced to Outpost in 2006 and Mr Sullivan's alleged guarantee of that loan. That case has also been broadly settled.

On consent of the sides, both sets of proceedings were transferred to the Commercial Court yesterday but further directions will not be sought if a proposed agreement between the sides is finalised by May 29th.

Yesterday's development follows a "standstill" agreement to facilitate talks between the sides after the bank initiated proceedings for judgment last October. Those talks had since led to "broad agreement", Mr Justice Peter Kelly was told.

In a letter to IBRC’s solicitors last month, Mr Fanning said he was prepared to pay €8 million in full settlement.