FORMER FIANNA Fáil councillor Gerard Killally and former Offaly GAA football manager Richie Connor are among four people being sued by National Irish Bank for €4.6 million over alleged default of repayments on development loans.
Mr Justice Peter Kelly heard yesterday that Mr Killally, Shean, Edenderry, Co Offaly, who in other legal actions has admitted making secret profits from two land deals, was admitted to hospital suddenly last Friday evening and his lawyers required time to take instructions related to the latest proceedings.
Mr Connor, Walsh Island, Tullamore, Co Offaly, who also admitted making secret profits from two land deals, is believed to be instructing new solicitors to represent him.
The proceedings by NIB are also brought against Frank Lawlor, Clonmullen Lodge, Edenderry, and Declan Guing, Carrick Road, Edenderry, who have, in separate proceedings yet to be finalised, sued Mr Killally and Mr Connor over alleged failure to disclose to them secret profits made from various land deals in Co Offaly in which all four were allegedly involved as partners.
In its proceedings, NIB claims it advanced a loan facility of €7 million to Plaza Developments Ltd (PDL) from December 2006. It claims the defendants later in December 2006 guaranteed the borrowings of PDL up to €8 million. A liquidator was appointed to PDL in September 2008.
NIB claims the loan facilities were for, among other things, building and developing an 80-bedroom hotel and leisure centre in the Downshire development, Edenderry. It claims PDL drew down €1.5 million during 2006 and €1.74 million in 2007 and defaulted on repayment. It claims the defendants had drawn down some €900,000 under another loan facility. The bank says €4.63 million was due on December 18th last on foot of the loan agreements and on foot of the defendants’ guarantees.
Counsel for Mr Guing and Mr Lawlor objected to the case being transferred to the Commercial Court on grounds that the bank delayed in bringing it. The judge ruled that the delay, while it “could and perhaps should” have been avoided, was not such as disentitled the bank from bringing the proceedings.
The judge granted the application by Brian Kennedy, for NIB, to enter the case into the Commercial Court and adjourned the bank’s application for summary judgment to May 13th.
