AIB secures €15.5m order over Offaly land deals

ALLIED IRISH Banks has secured €15.5 million judgment orders against former Fianna Fáil councillor Gerard Killally and former Offaly GAA football manager Richie Connor over unpaid loans relating to land deals in Co Offaly, including deals where both men admitted making secret profits.

AIB sought the orders at the Commercial Court yesterday against Mr Killally, Mr Connor and two other men – Declan Guing, Carrick Road, Edenderry, and Frank Lawlor, Clonmullen Lodge, Edenderry.

Mr Justice Peter Kelly was told Mr Killally was consenting to the judgment order while Mr Connor, in a letter, also offered no opposition. Mr Connor had written he was unable to meet his obligations concerning the loan and offered an apology, the judge noted.

In those circumstances, judgment in the sum of €15.58 million was entered against both men.

The judge adjourned to July 24th the application against Mr Guing and Mr Lawlor for judgment for some €15.44 million after their counsel, Daniel Sims, said he wished to assess if documents due to be discovered yesterday by AIB in other proceedings offered any defence to the judgment application.

Those other proceedings involved claims against solicitor Miriam Kavanagh who had advised his clients in relation to the land transactions, counsel said. His clients had written asking Ms Kavanagh about possible defences to the bank’s application and received a “somewhat surprising” response from her solicitors suggesting his side were seeking legal advice.

Mr Sims also said it might be there was no defence to the bank’s proceedings against his clients but he wanted a short opportunity to assess the situation. His clients were in this position because of “unclear dealings, to put it lightly”.

Mr Justice Kelly said the letter on behalf of Ms Kavanagh made a number of “telling points”, including Mr Guing and Mr Lawlor should be able to instruct their own solicitors as to the facts and then decide if they had a defence. The letter also stated it was inappropriate for Ms Kavanagh to tender any advice as she was subject of a professional negligence claim by them.

The judge said there appeared a “thin enough” basis for a defence but he would allow Mr Guing and Mr Lawlor an opportunity to examine the AIB documents.

AIB has brought the proceedings over loans issued for development and other purposes, including a €4.8 million facility to buy 10 acres at Daingean Road, Tullamore and a €8.5 million loan to part fund the purchase of 16 acres at The Downshire, Edenderry.

AIB alleges all four defendants have failed to meet repayments.

Earlier this month, a legal action was settled against Mr Killally and Mr Connor over the claims they made “secret profits” of several million from four land deals. That action was brought by Mr Guing and Mr Lawlor over all four deals while Adrian Daly, Racefield House, Cappincur, Offaly, claimed he was a partner in two deals.