A dispute over an alleged agreement to forgive some €11.2 million of €70 million owed to Allied Irish Banks by the estate of a deceased Dublin woman has come before the Commercial Court.
Helen Conlan, as administrator of the estate of her mother Patricia Cosgrave, has sued AIB plc seeking to effect an alleged agreement involving, on payment of almost €59 million of a €70 million debt, the remaining €11.2 million would be written off by the bank.
Ms Cosgrave, Churchtown, Dublin, died in November 2014 aged 78 and was predeceased by her husband Jack, a well-known property developer and builder.
The case was admitted to the Commercial Court list by Mr Justice Brian McGovern on consent between the parties.
Mediation hopes
Patrick Leonard SC, for Ms Conlan, said it was hoped the matter could be resolved through mediation.
The court heard that prior to her death, Ms Cosgrave held four credit facilities with AIB in a total sum of almost €70 million.
The facilities were provided to restructure existing loans and the first facility was for €43.8 million, the second for €14.729 million, the third for €160,000 and the fourth for €11.25 million.
Ms Conlan, Tully Road, Kildare, claims an agreement was reached in May 2014 between the bank and her late mother which provided, if the first three facilities were paid in full before they were due to be repaid, that the bank would forgive what was due and owing on the fourth facility.
Ms Conlan said an asset of Ms Cosgrave, a property at No 1, Georges Dock, at the IFSC Custom House Dock, was put up for sale and the proceeds would allow for a payment to be made to AIB before the end of November 2014.
A contract for the sale of the building was entered into for €56.75 million and a deposit was paid, she outlined.
Full repayment
Since her mother’s death, AIB has contended it is entitled to a full repayment of all facilities and has refused to facilitate the early repayment of the first three loan facilities, she said.
In her action, Ms Conlan claims the alleged agreement reached in May 2014 between the late Ms Cosgrave and AIB gives rise to an entitlement to the estate to effect a full repayment of the first three facilities ahead of the repayment schedule.
She also seeks an order stipulating, if the full repayment occurs, that the defendant is obliged to write off, waive or forgive any payment obligation in connection with the credit facility provided for by the fourth facility.
It is argued that, because Ms Cosgrave offered to effect a full repayment of the first three facilities shortly before her death in November 2014, AIB is not permitted to demand full repayment of the four facilities.