PROPERTY DEVELOPER Paddy Kelly, his two sons and a daughter are being pursued by ACC Bank at the Commercial Court for repayment of loans and interest amounting to over €22 million.
In two separate actions, ACC wants judgment orders against Mr Kelly himself for €6 million and, in the second case, is seeking judgment for €16.9 million against Mr Kelly and his sons Simon, with an address at The Old Rectory, Dunganstown, Co Wicklow, and Christopher, Clarion Quay Apartments, IFSC, Dublin; and daughter Emma, Harcourt Terrace, Dublin.
Mr Justice Peter Kelly was told yesterday that Mr Kelly is in Florida on business and solicitors for the bank had made a number of unsuccessful efforts last month to serve legal proceedings on him at his home at Clonmore, Shrewsbury Road, Dublin, before doing so on April 23rd last on his housekeeper. Solicitors had no reply when they attempted on two separate occasions last month to contact Mr Kelly via the intercom to the premises, secured by electronic gates.
When the gates opened on April 23rd last, apparently to admit gardeners, the documents were served on his housekeeper who confirmed Mr Kelly lived there.
The judge refused an application by Damien Keaney, for Mr Kelly, to adjourn for a week the case against Mr Kelly.
Counsel said he needed time to take instructions on whether that case was being defended. Mr Kelly was in Florida on business and was dealing with several issues, counsel added.
The judge said he would adjourn that case to Wednesday only, when he would have to be told the basis of any defence.
He said he wasn’t impressed by the “brinkmanship” in Mr Kelly’s attitude and was also concerned, given Mr Kelly’s statement in other proceedings that his liabilities exceed his assets, there may be a “race” between his creditors.
If there was no basis for a defence, there was no reason why the matter should not be dealt with, the judge said. Brian Kennedy, for ACC, said it was very anxious to have the matter expedited.
The first action relates to several loans advanced to Paddy Kelly, including a €4.87 million loan of March 2005 relating to construction of 62 aparthotel units at the Clarion Hotel, Liffey Valley.
Other loans include €536,000 in October 2003 to buy two properties in Tulfarris Village, Co Wicklow, and two dual life memberships to Tulfarris Golf Club; a July 2004 €600,000 loan for equity release on the Tulfarris properties and loans of €1 million in 2003 and 2004 to invest in ACC’s SolidWorld investment bonds.
ACC also wants repayment of some €432,000 under guarantees by Mr Kelly over the debts of Fablinbe Ltd, Lad Lane, Dublin.
The judge adjourned to May 28th the second action in which the bank wants orders for judgment for some €16 million each against Mr Kelly and his three children. The bulk of that claim arises from guarantees allegedly given by the Kellys over loans of late 2007 to Pressaro Ltd, with registered offices at Lower Baggot Street, Dublin, to buy a property at Pembroke Place, Ballsbridge. The bank claims the property has a current market value of up to €8.5 million.
ACC claims the Pressaro loan was a short-term facility but no repayments of interest had been made since March 2008. It says each of the four defendants entered into a guarantee on November 8th, 2007 over the Pressaro loan and some €16.9 million is owed.
The bank appointed a receiver over the assets of Pressaro last month.
Mr Keaney said his clients have a defence to the claims concerning Pressaro in that, when Pressaro could not sell the Baggot Street property, ACC refused to consent to it being leased for an annual rent of €500,000 and the proposed lessee “walked”.
In those circumstances, there was an issue whether ACC was entitled to enforce the guarantees.
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