AIB pursues Dublin solicitor over €4.7m loan

AIB is pursuing a Dublin solicitor, Barry Lyons, for judgment for €4.7 million over alleged unpaid loans.

The bank’s proceedings against Mr Lyons, Garville Road, Rathgar, Dublin were admitted by Mr Justice Brian McGovern on Monday to the fast-track Commercial Court.

The application to transfer the case was on consent of Mr Lyons, a solicitor for more than 20 years who specialises in the area of corporate recovery. According to court papers, he believes he has a bona fide defence to the bank’s claim.

Statement

In a sworn statement, AIB manager Jo Ann Shannon said the bank wanted judgment for €4.7 million against Mr Lyons over refinanced loan facilities extended to him and a third party in 2011 on a joint and several basis.

According to the loan agreement, the principal sums in respect of the facilities were due to be repaid by Mr Lyons and the third party in August 2014, she said.

In July 2016 the bank made demands on Mr Lyons and the third party for immediate repayment of the sums due but the entire sum remains outstanding and unpaid, it is alleged.

Ms Shannon said the bank was in regular correspondence with the borrowers to discuss an attempt to reach a mutually acceptable refinancing solution to the debt due.

In October 2014 the borrowers indicated their willingness to proceed with a proposed restructure of their debt on terms which provided for the disposal of various properties, she said.

Assets

Negotiations continued on the disposal of assets but, in March 2016, the third party notified the bank of his proposed entry into a personal insolvency arrangement, she said.

In July 2016 the bank formally made demand on Mr Lyons and the third party for immediate repayment of the sum due.

In October 2016 the bank was notified the third party had filed for and obtained a protective certificate under the Personal Insolvency Act 2012. The bank has not taken any steps with regard to recovery of its debt against the third party, Ms Shannon said. The bank began proceedings against Mr Lyons in November 2016 over the loan repayment.