Anglo awarded €89.9m over unpaid loans

AN €89.9 million summary judgment order entered against a Co Laois businessman in favour of Anglo Irish Bank yesterday is believed to represent the largest judgment against an individual issued by the Commercial Court to date.

The order arose from loans advanced by Anglo from 2006 and into 2009 to companies controlled by Thomas Keane and associated with the Killenard and Heritage Hotels and Golf Club in Co Laois. In June, Anglo appointed joint receivers over the assets of the defendant, mainly properties, which were secured in favour of the bank.

The judgment, entered in the case of Mr Keane, Corrigeen, Stradbally, Co Laois, was among 33 new cases in the court’s list dealing with claims of up to €300 million, mostly over unpaid loans to financial institutions.

Mr Keane was not in court but solicitors acting for him had in earlier correspondence indicated he was not opposing the judgment order.

After hearing from James Doherty, for Anglo, Mr Justice Peter Kelly said he was taking from the correspondence that Mr Keane accepted the amount sought was owed. The judge then entered judgment for the total sum, plus interest, of €89,937,870, plus costs of €160 to the bank.

The proceedings arose from loans to various companies, including a €24.3 million loan facility of January 2008 to TK Contract Systems Ltd, secured by the guarantee of Mr Keane. Loans of €21.6 million were also advanced to Corrigeen Construction Company Ltd in September 2008 and on various dates in 2009, also guaranteed by Mr Keane.

A further €17.2 million loan was advanced in January 2008 to Kea-Lwe Ltd with Mr Keane also providing a guarantee. In November 2009, the bank made a further loan of €10.8 million to Killenard Golf Company Ltd, again secured by a guarantee of Mr Keane. Additional loan facilities were provided by the bank to Fanridge Ltd and Sureside Ltd.

The bank demanded repayment of the various loans in June 2010 and when no repayment was made, brought proceedings against Mr Keane.

In another case yesterday, a Co Limerick businessman, Michael Murphy Senior, Elsinore, Castletroy, consented to judgment of more than €29.1 million against him arising from loans advanced to a number of partnerships to buy and develop property.

A second businessman, Liam McArdle, of Castle Mungret, Co Limerick, consented to summary judgment for €7.1 million in relation to some of the loans.

AIB has also sought summary judgment orders for some €29.1 million each against Margaret Murphy, wife of Mr Murphy, and the couple’s three adult children – Michael Murphy jnr, Gail Fitzgerald (née Murphy) and Thomas Murphy over various unpaid loans to the partnerships.

Rossa Fanning, for those four defendants, said they wished to defend the proceedings on the grounds they did not understand the structure of the partnership and were unaware of the implications of documents signed by them. Counsel said Michael Murphy snr was the driving force in the partnership.

Mr Justice Kelly agreed to adjourn to a later date the proceedings against those four defendants.