ANGLO IRISH Bank is seeking summary judgment orders for more than €15 million against financier Niall McFadden over unpaid loans and related guarantees.

The proceedings by Anglo were admitted on the application of Bernard Dunleavy to the Commercial Court yesterday. In earlier proceedings against Mr McFadden, National Irish Bank is also seeking orders for some €15 million arising form loans and guarantees.

In the Anglo case, Mr Justice Peter Kelly was told yesterday by Rossa Fanning, for Mr McFadden, that his client had a defence to the summary judgment application arising from earlier negotiations and agreements. While it was admitted the money was owed, Mr Fanning argued that the bank was precluded from bringing its demands now in light of those negotiations.

Mr Justice Kelly adjourned the case to December 18th when he will decide whether the defence is adequate to allow the matter to go to a full plenary hearing.

Anglo has brought the action over a loan facility letter of September 2008 for €8.01 million under which it restructured an existing loan of Mr McFadden. It is also moving under a November 2008 guarantee and indemnity executed by Mr McFadden arising from a restructuring of the borrowings of Boundary Finance Ltd.

Anglo demanded payment under both facilities last October and initiated the legal proceedings after payment was not received. It is claiming summary judgment for €13.3 million plus the euro equivalents on the date of hearing of £326,649 and $2.46 million.

The bank claims the facilities were repayable on demand. It said the combined facilities were repayable according to a schedule of repayments with the balance of both to be repaid by June 30th, 2010. While Mr McFadden had made certain repayments, he had not adhered to the repayment schedule and the bank was entitled to issue its demand, Anglo claims.

It alleges Mr McFadden has no bona fide defence to the claim.

Mr Fanning said his client and the bank had had negotiations on a standstill agreement and there was an oral agreement last July related to the loan facilities. The negotiations broke down in October and it was Mr McFadden’s case that the bank’s conditions frustrated the oral agreement of July.

It was not disputed the money was owed but he was contending that the bank was prevented from bringing the case arising from its agreement in July to forbear, Mr Fanning added. There were sufficient resources available but the bank had blocked Mr McFadden’s ability to deal with his accounts.

The separate NIB cases against Mr McFadden, to be heard early next year, arose after Mr McFadden put together a deal in 2007 to purchase the Buy & Sellclassified ads business. Naldin Ltd was incorporated to buy the business from Associated Newspapers for €21.3 million. NIB had advanced more than €18 million to Naldin.

After Naldin was unable to raise equity finance, an examinership failed, NIB appointed a receiver and the Buy & Sellbusiness was sold for €1.9 million last month.