Former bank director Somers settles €1.7m loan action

A summary judgment application for €1.7 million against former AIB and Central Bank director Bernard Somers in relation to a loan that was secured on various assets, including his home in Foxrock, Dublin, has been struck out at the Commercial Court after the sides reached an agreement.

Launceston Property Finance DAC had brought the case arising from a demand issued on October 4th, 2017 for some €1.76 million allegedly outstanding on a €3.62 million loan but the matter was adjourned for talks

On Monday, Gary McCarthy SC, for Launceston, told the Commercial Court the matter had been resolved between the parties. With the consent of both parties, the case could be struck out, he said. No details of the settlement were given.

Mr Justice Robert Haughton agreed to strike out the case.

Launceston had sought summary judgment against Mr Somers and his wife Marguerite, of Old Bawn, Kerrymount Avenue, Foxrock.

The application arose from a 2010 loan for €3.62 million made by Anglo Irish Bank Corporation Ltd to the couple.

The fund accepted Ms Somers’ liability was limited to her interest in their home, described by the fund as a “very valuable” asset.

After Anglo's collapse, the loan was transferred to Irish Bank Resolution Corporation and acquired by the fund in 2014.

Launceston claimed the loan was not drawn down for purchasing a family home but that the couple’s home was security for it.

The fund claimed it had engaged with the couple over alleged failures to make repayments in line with the loan facility terms.

It claimed certain repayments were made and, following lengthy negotiations, a debt repayment strategy was agreed in July 2015 which involved the €1.54 million proceeds of sale of a property at Upper Mount Street in Dublin being paid to the fund.