AIB seeking €6m from wife of late businessman Frank Smith

Allied Irish Banks is seeking summary judgment for €6 million against a woman arising from alleged guarantees by herself and her late husband over loans to their son to buy a shopping centre and other properties.

AIB claims Siobhán Smith and her since deceased husband, businessman Frank Smith, provided guarantees for €6 million in relation to loans of some €50 million advanced in 2007 to their son, developer Gary Smith, and his wife Amanda.

The loans were used to acquire Ashleaf Shopping Centre and 33 acres at Callighstown, Rathcoole, Co Dublin.

AIB claims, as security for the loans, it was given legal charges over the shopping centre centre at Crumlin Cross, the adjoining Submarine Bar, the lands at Rathcoole and a 20-year lease of 120 car parking spaces. The security, it claims, also included an agreement by Siobhán and Frank Smith to a joint and several guarantee in the amount of €6 million.

Bertie Ahern

Frank Smith was an erstwhile business partner of former taoiseach Bertie Ahern. Both men were involved with Scientia Solar, a company involved in the solar energy sector.

Frank Smith and his brother, John , former owners of the Submarine Bar, made a €5 million tax defaulters’ settlement with the Revenue Commisisoners in 2003.

Receivers were appointed in 2013 over Gary Smith’s assets including the shopping centre and the bar. And AIB also secured a judgment for €51 million against Gary Smith who, in late 2013, was adjudicated a bankrupt in the UK.

In its Commercial Court proceedings, AIB claims Frank Smith, who died in 2015, had entered into a settlement with it in relation to the monies owed arising from the guarantee but that settlement was not complied with.

Spanish properties

It claims Mrs Smith, Loughcasa Lower, Barberstown, Straffan, Co Kildare, who is executor of her husband’s estate, has failed to advance a reasonable proposal to address her liability to the bank and has failed to take any steps to progress the administration of her husband’s estate.

Mrs Smith, it also alleges, has sold two properties in Spain for €1.7 million.

AIB made a demand for repayment in January 2018. It claims, in breach of the guarantee, Ms Smith has failed to pay the sum due and owing and it wants summary judgment for €6m against her.

On Monday, Mr Justice Brian McGovern granted the bank’s application to fast track the case in the Commercial Court and adjoured the matter to April.

Lawyers for Mrs Smith said they were neither consenting, nor objecting, to the application to fast track the case.