A COUPLE have consented before the Commercial Court to orders requiring them repay more than €37 million to Irish Bank Resolution Corporation arising mainly from their personal guarantees on loans advanced for development of the Whitfield Clinic, a private hospital in Waterford.
Mr Justice Peter Kelly entered the summary judgment orders for €37.2 million on consent yesterday against James Madden and his wife Mary, Ballylennon House, Palatine, Co Carlow.
A solicitor for the couple indicated they were consenting to judgment.
The application arose from a €9.4 million personal loan facility advanced by IBRC – then Anglo Irish Bank – to the defendants from 2005, plus a €33 million loan facility also made in 2005 to EuroCare, with registered offices at KPMG, South Mall, Cork.
The loans were advanced mostly for development by EuroCare of the Whitfield Clinic, Butlerstown North, Cork Road, Co Waterford.
The bank claimed the couple executed personal guarantees over the EuroCare facility in March 2006.
The bank appointed receivers over the assets and undertakings of EuroCare in July and August 2011 after it had failed to repay the full amount of the facility.
Security for the loans had included first legal mortgages over various lands and properties, including at Fitzwilliam Square, Dublin; High Park, Drumcondra, Dublin; 80 acres at Punchestown, Co Kildare; a property at Tullow Street, Carlow, and two units at Sandyford Office Park, Dublin.
In December 2011, the bank demanded repayment of some €9.6 million due under the personal loan facility.
When that sum was not repaid, the bank appointed receivers over certain charged assets of the couple.
Also in December 2011, it demanded repayment of some €26.9 million from the couple, claiming that was the aggregate amount due under their guarantees of the EuroCare facility.
When repayment was not made, the bank issued the proceedings seeking summary judgment.
With interest, the total sum due as of yesterday was €37,208,026, Mr Justice Kelly was told by Neil Steen, for IBRC.
