A BANK has brought legal proceedings for orders requiring a company director to pay the €24 million debts of a failed building company.
Anglo Irish Bank Corporation plc has brought the action against Tony Browne, a director of Maryborough Construction Holdings Ltd, over guarantees provided by him in September 2006 in exchange for credit and loan facilities to fund a shopping centre development by Maryborough at Portlaoise, Co Laois.
The bank said Maryborough, with registered offices at Birchgrove House, Roscrea, Co Tipperary, has been unable to complete the development.
It was placed under court protection for a period, following the appointment of an examiner, but that protection was lifted last December.
The bank appointed a Dublin accountant, Martin Ferris, as receiver shortly before Christmas.
Maryborough Construction Holdings has a 2.7 hectare site in Portlaoise on which it was planning to build a shopping centre and offices.
However, it was unable to secure an anchor tenant for the shopping mall, and the project fell through.
Mr Ferris placed the property up for sale via agents HOK Savills and CB Richard Ellis last February with a €25 million price tag.
It was the first forced sale of a significant development site since the credit crunch began.
Maryborough had drawn down more than €23 million of an €84.5 million that Anglo had agreed to loan to the building company.
Anglo Irish, which demanded repayment by Mr Browne last September, has now initiated proceedings seeking judgment for €24.2 million.
The demand arises from a guarantee over Maryborough's borrowings given by Mr Browne, of Abbott's Hill, Malahide, Co Dublin, on September 21st, 2006.
Anglo Irish Bank is seeking the right to force Mr Browne to make up the balance should the sale fail to realise the full amount owing to it.
When the case was called before Mr Justice Peter Kelly yesterday, Mr Browne, representing himself, asked for an adjournment to allow him secure legal advice and to take steps to raise the monies owed.
Mr Browne said a receiver has offers for the lands in sums greater than those owed to the bank.
Lyndon MacCann SC, representing Anglo Irish Bank, said it was prepared to agree to an adjournment of the case until May 26th next.
