BANK OF Ireland is suing a company director for €4 million arising from an alleged personal guarantee over loans given to his company, now in receivership with debts of €22 million.
Mervyn Walsh, Lansdowne Village, Ballsbridge, Dublin, and Rue Plati, Monaco, allegedly guaranteed up to a maximum €4 million the liabilities of Largreen Ltd, of which he is a director.
Bernard Donleavy told Mr Justice Peter Kelly yesterday that his client said he had no recollection of signing such a guarantee and had seen some discrepancy in signatures on that guarantee.
The judge transferred the case to the Commercial Court list and adjourned the bank’s application for summary judgment against Mr Walsh to April 23rd.
The bank alleges it granted commercial loans between May 2007 and May 2008 for the purchase and development of a housing site at Kilminchy, Portlaoise, for the payment of VAT on that site, and for the purchase of a chateau and 1,000-acre farm in France. A receiver was appointed to Largreen last December and the total amount owed to the bank was €22 million.
Under the loan agreements, Mr Walsh guaranteed up to a maximum of €4 million and the guarantee was intended to cover all unpaid interest on Largreen’s liabilities, the bank said.