Monday, May 14, 2012

AIB secures judgment of €14.8m against couple over property loans - The Irish Times


ALLIED IRISH Banks has secured judgment for some €14.8 million at the Commercial Court against a couple with significant property investments.

Mr Justice Peter Kelly entered judgment yesterday against William and Sheila Moran from Kilcolgan, Co Galway, after it was indicated they had no defence to that claim. He refused a stay on the judgment order.

An application by AIB Mortgage Bank for additional judgment orders for €4.1 million against the couple was adjourned to Monday.

In separate proceedings, the couple and their son Michael Moran are challenging the bank’s appointment, in March, of receivers for 24 properties.

Mr Moran said he was concerned the receiver was appointed with an intention to sell, which would extinguish his side’s equity of redemption in the properties.

AIB claimed the couple’s liabilities arose from a loan agreement in August 2010, and another in June 2010, made between the bank and the couple and Michael Moran, and from a series of mortgage loan agreements.

It said it began negotiations with the defendants and their adviser from late 2010 about restructuring the facilities. Those talks were predicated on the couple’s commitment to either refinance an office block in Poland, or give the bank the sale proceeds of that property, it said.

The bank said the couple were also to give it the proceeds of sale of a licensed premises, Morans on the Weir, in Galway.

While it understood the shares in a Polish company, Grudnia Investments, were held in the couple’s name, it learned on about August 30th, 2011, that they had been transferred to their son Donal Moran, AIB said.

The bank said it understood the sale of Morans on the Weir would realise €1.25 million. It later learned that sale was completed without the bank getting anything.

After the couple said they could not sign a proposed new letter of sanction, of October 17th, 2011, negotiations ended, the bank said. It claims the couple owe more than €14 million to AIB and €4.5 million to AIB Mortgage Bank.

In their action against AIB, AIB Mortgage Bank and receiver Jim Luby, the couple and their son Michael want orders restraining Mr Luby from carrying out his functions.

In an affidavit, William Moran said they had had lengthy negotiations with AIB concerning dealing with their indebtedness and sums of about €2.7 million had been paid to the bank following sales of unencumbered property assets.

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