Bank pursues O'Donnell French ski chalet

BANK OF Ireland has taken further legal action against property investor and solicitor Brian O’Donnell in a bid to make a claim against a Luxembourg company that owns a luxury ski chalet in the French resort of Courcheval.

Mr O’Donnell told the Commercial Court earlier this week that the bank was seeking “charging orders” against GreyStoke, the company behind Chalet Hermine.

The bank will make applications in court actions against him next week over the chalet, he said.

Bank of Ireland examined Mr O’Donnell for two days this week over “alarming” discrepancies in statements of assets dating from March 2011 and February last.

The bank, which is owed €75 million by Mr O’Donnell and his wife, has sought more information on properties that they claimed to own in full or part but which they later said were held in trust for one or more of their four children.

The couple filed for bankrtupcy in London last month after the bank rejected their proposal for a voluntary debt settlement arrangement under UK bankruptcy law.

Mr O’Donnell said he was also involved in legal actions in Sweden and Switerland over property investments made by Vico Capital, the trading name for his business.

A “substantial number of civil proceedings” had also been taken against him, he said.

An office building at Westferry Circus in Canary Wharf, London was likely to be put in receivership he said, as the bank has sought a charging order on it, scuppering a refinancing of £135 million (€165 million) of loans with US investment bank Morgan Stanley falling due today.

A court case will take place in Sweden next week, he said, over the Fatburen office building in Stockholm which German bank Aareal has seized over debts of €250 million.

Mr O’Donnell claimed that Bank of Ireland’s actions had destroyed the value of Vico’s properties. His cross-examination by the bank will resume on Tuesday.