A BUSINESSMAN is being sued by Bank of Ireland for about €12 million in two separate actions arising from unpaid loans granted for developments in Co Leitrim and Co Kildare, the Commercial Court has heard.
The €4.2 million was extended for the building of 18 apartments and 14 lodges adjacent to the Lough Allen Hotel and Spa complex in Drumshambo, Co Leitrim, while the €6.49 million was for the refinancing and equity release of a commercial property at Gallows Hill, Dublin Road, near Athy in Co Kildare.
Claims have also been made against Patrick White of Kilberry Manor, Wilkinstown, Navan, Co Meath, by several other financial institutions and lay creditors and it has been agreed those claims will be addressed with the Bank of Ireland claim in mediation talks, Mr Justice Peter Kelly was told. A solicitor for Mr White said the parties had agreed to try and mediate their differences within a six-week period. If that was not successful, the bank’s action would proceed to hearing.
The bank claims Mr White was advanced loans totalling €4.2 million in 2003/2004. It also claims he is liable under a guarantee given by him in 2005 for another €6.49 million given to Goldman Securities, Shannon Industrial Estate, Co Clare. The total amount now owed by Mr White, in interest and arrears, is €12.48 million, the bank claims.
In one set of proceedings against Mr White, the bank claims he drew down €2.8 million in 2003 for the Lough Allen development and in 2004 got approval for another €1.8 million to build a number of additional lodges. He later got another €125,000 to restructure an overdraft facility. The loans were meant to be repaid within 12 months but Mr White had failed to pay and, up to March last, owed €4.43 million for those loans. The second set of proceedings relate to a loan for the Gallows Hill property drawn down by Goldman Securities in December 2005 with Mr White as principal guarantor, making him liable, the bank claims, for the entire €6.49 million.
The bank claims the company’s account fell into arrears and it failed to make payments of interest and on the principal when they fell due. In March 2008, the bank demanded repayment of the principal plus interest, now standing at just over €8 million but the company failed to pay, it is claimed. Mr Justice Kelly admitted both actions to the Commercial Court.