A DISPUTE between Bank of Ireland and Galway businessman John Sweeney over the need for a freezing order on his accounts has been adjourned to next week on Mr Sweeney’s undertaking not to spend more than €5,000 of his assets before then.
Mr Sweeney, Goreen, Gortacleva, Bushy Park, Galway, who previously consented to judgment for just under €10 million in favour of the bank over unpaid loans, has strongly rejected claims he is attempting to hive off funds due to the bank.
On April 1st, the bank secured an interim order restraining Mr Sweeney from reducing his assets below €10 million. That order was discharged a week later on the undertaking of Mr Sweeney not to spend any more than €5,000 from his assets. When the matter came before Mr Justice Peter Kelly at the Commercial Court yesterday, Mark Sanfey for the bank said the freezing order and a garnishee (assets charging) order had been sought in aid of execution of the €10 million judgment order.
Counsel said issues had since arisen out of affidavits provided and his side wanted time to consider those. The sides intended to meet and that could resolve matters, he added.
Rossa Fanning for Mr Sweeney said his client had given an undertaking not to reduce the value of his assets by more than €5,000. While Mr Sweeney was prepared to continue that undertaking, there was never any basis for a freezing order and the bank’s application was grounded on “a serious misapprehension”.
On the basis of Mr Sweeney’s undertaking, Mr Justice Kelly said he would adjourn the case to Monday next. For avoidance of doubt, the judge said the undertaking meant Mr Sweeney cannot spend any more than €5,000 before that date.
Ciaran Lewis, for Frank Brennan and Frank Brennan Tax Consultants Ltd, who were previously joined to the proceedings in the capacity as liquidator of two companies, Tidevale Ltd and Connemara Livestock Sales Ltd, said there was no basis for their having been joined to the case.
Bank of Ireland had expressed suspicions about Mr Sweeney’s alleged switching of funds to the two companies and had sought orders to reserve all liquidated funds of the companies towards the bank’s judgment.
However, Mr Fanning said the bank’s claim that Mr Sweeney was to transfer funds out of companies in liquidation “imminently” was something that “clearly was not going to happen”.
The bank had gone to court without contacting Mr Sweeney about its apprehensions and, had it done so, an explanation would have been given and the application to the court would not have been brought, he added.