Allied Irish Banks has secured €8 million summary judgment orders against two businessmen over personal guarantees provided by them over unpaid loans of some €18 million to a property company.
Mr Justice Peter Kelly granted the orders today against Donagh Barry, Cowper Road, Rathmines, Dublin, and Michael McCarthy, Shrewsbury Downs, Ballinlough, Co Cork.
Dermot Cahill, for AIB, sought the orders under guarantees provided in August 2007 by both men, up to a maximum €8 million, over loans provided to Central Plaza Properties Ltd with registered offices at Cork Road, Midleton, Co Cork.
AIB had advanced loans of some €18 million to that company to develop a zoned site in the Mahon district of Cork city.
The bank said the proposed development did not proceed because it was not considered financially viable due to deteriorating market conditions in April 2008 when planning permission was secured.
After the company defaulted on interest payments in 2009, the bank demanded repayment in late 2009 but no repayment was made. It then initiated proceedings against the guarantors.
The case had been adjourned by Mr Justice Kelly to facilitate talks between the sides but yesterday he was told those talks had not resulted in any agreement.
Lawyers for both defendants said they were not consenting to judgment but were not advancing any defence to the bank’s claim.
In those circumstances, Mr Justcie Kelly said the bank was entitled to summary judgment for €8 million against both defendants and he made those orders.
