ACC Bank has secured summary judgment for almost €6.8 million on consent against a Co Galway property developer over unpaid loans.
Tom Naughton, Bodane, Tuam, along with another developer, Sean Healy, Garrafraun, Tuam, is facing an additional claim for €5.2 million summary judgment from ACC over other loans.
He and Mr Healy, representing themselves at the Commercial Court today, said they believed the bank was adding on excessive interest in relation to that €5.2 million claim, and Mr Justice Peter Kelly has adjourned that matter to June next to allow the bank file affidavits dealing with the interest issue.
When Rossa Fanning, for ACC, sought his costs of today's hearing, Mr Justice Kelly said he would limit the costs to €165 in circumstances where both men had dealt in a straightforward fashion with the actions.
ACC had sought judgment for some €6.5 million against Mr Naughton over loans granted from 2001 to purchase retail and office units at Terryland retail park, Co Galway, to construct an extension to the N17 superstore complex at Milltown, Tuam and for equity release.
The bank had varied the loan facilities to provide for a moratorium on payments of principal until June 2010.
It also sought an additional €294,605 summary judgment order against Mr Naughton arising from his guarantee of sums due and owing from N17 Electrics Ltd (in liquidation) under an overdraft facility. It demanded repayment of that sum, plus the €6.5 million sum, in January last.
The bank’s claim for €5.2 million judgment orders against Mr Naughton and Mr Healy arises from a €2 million loan of February 2007 to buy a 15-acre site at Ballymote, Co Sligo, and a €2.78 million facility of September 2010 to refinance a previous loan and to provide a maximum €315,000 to help complete 15 housing units at Ballymote.
ACC demanded repayment of some €5,251,186, including interest, under those facilities in January last.
