THE INDEPENDENT Wexford TD and developer Mick Wallace has claimed that ACC bank threatened him with bankruptcy if he did not co-operate with a receiver appointed to recover debts of €19 million.
In a series of interviews following the judgment, Mr Wallace said he did not know if ACC now planned to bring bankruptcy proceedings against him. Under the Electoral Acts, a TD who is a bankrupt and has not discharged it after six months must immediately resign the seat.
Mr Wallace said yesterday that if the bank did petition the courts, he might consider challenging it legally.
“I did borrow the money and I could not pay it back, so I have to take it on the chin,” said Mr Wallace.
However, in a statement last night, the Wexford TD said he had “serious reservations” about the manner in which some banks were operating.
He specifically criticised the provision whereby loan amounts were “repayable on demand” (immediate repayment).
“I naively thought they would allow me to work my way through the crisis,” he told RTÉ, adding that regulations needed to be put into place to be sure the terms of every loan were realistic and reasonable.
Mr Wallace said that the properties, apartments and shops that the bank would take possession of would not realise €19 million. He said if sold immediately, they would realise only “ridiculous prices” and a large shortfall would arise.
Mr Wallace claimed that he had a good working relationship with ACC until late last year, but there was a “change of attitude” when he declared publicly he would be seeking election to the Dáil.