A BUSINESSMAN has consented to a €2.5 million judgment being entered against him at the Commercial Court arising from his guarantee of loans to a Romanian company.
Mr Justice Peter Kelly entered judgment in that amount this week and also granted an application by Una Tighe, for Romanian Private Equity Projects Ltd, with registered offices at Westboro House, Montenotte, Cork, for a European Enforcement Order against Simon Kelly, with addresses at The Old Rectory, Dunganstown, Co Wicklow, and Rope Walk Court, Derby Road, Nottingham, England.
Mr Kelly is the son of developer Paddy Kelly.
Romanian Private Equity Projects had initiated proceedings against a Romanian company, SC Optim Real Imob (Scori), a Luxembourg company Bacau Finance, and four Irish businessmen, including Mr Kelly, over an unpaid loan of €5 million advanced to Scori.
The other three defendant businessmen are Paul Doody, Woodstock, Marlborough Road, Glenageary, Co Dublin; Alan Torpey, Balally Grove, Dundrum, Dublin, and Gerry Cosgrave, The Court, Donnybrook Castle, Dublin.
Because of difficulties with service of the proceedings on Scori, the action against it was not transferred to the Commercial Court. Bacau Finance never appeared in the proceedings.
The proceedings against the four men arose from guarantees allegedly provided by them in May 2008 related to the loan.
It was claimed the loan was given under an agreement of May 2008, was to be used by Scori for working capital purposes and be repaid on May 20th, 2009. The loan was not repaid and, with interest, €6.8 million was due and owing, the plaintiff claimed.
It was claimed, in consideration of the plaintiff not taking proceedings, a payment agreement was reached in September 2009 under which all the defendants except Mr Kelly would pay €6.8 million by September 30th, 2009, plus legal fees. It was claimed those defendants failed to pay the sums agreed.
