Mansfield says group collapsed over bank's failure to honour loan agreement - The Irish Times - Fri, Nov 11, 2011

MARY CAROLAN

HOTELIER AND developer Jim Mansfield is opposing Bank of Scotland’s claim for summary judgment for €206 million against him on grounds including that the bank’s failure to honour an alleged agreement to lend him more money to complete the Citywest convention centre led to the collapse of the Mansfield group.

The claim that this “magnificent empire” collapsed because of the bank’s refusal to provide additional funds in 2008, when most of the Mansfield group loans were in “serious and repeated default” with more than €200 million owed to the bank, was “extraordinary” and unsupported, Paul Gallagher SC, for the bank, said.

Mr Mansfield’s case was “utterly fanciful” and among the most “far-fetched” to have come before the Commercial Court, Cian Ferriter SC, also for Bank of Scotland, said.

They were outlining the bank’s case for summary judgment against Mr Mansfield arising from his personal guarantees of debts on various of his companies.

Mr Mansfield, Tasaggart House, Saggart, Co Dublin, represented by Patrick Leonard, contends he has an arguable defence to the bank’s claim requiring the court to refuse summary judgment and allow the matter to go to a full hearing.

The hearing of the bank’s application concluded at the Commercial Court yesterday before Mr Justice Peter Kelly who reserved judgment. The case relates to loans provided by Bank of Scotland to HSS, Jeffel and Park Associates Ltd – of which Mr Mansfield is a director – to buy lands and develop a conference centre, offices, a golf course, residential units and a hotel.

The bank appointed a receiver to HSS in July last year.

Among various claims, Mr Mansfield has alleged business was conducted between him and Bank of Scotland via verbal agreements on funding with the paperwork put in place later.

He was not in court yesterday.

via irishtimes.com

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