INBS wins €78.6 million case against Carroll

[mmrebel]

The Commercial Court has granted a judgement compelling a company controlled by developer Liam Carroll to repay €78.6 million of unpaid debt to Irish Nationwide Building Society.

The debt relates to a loan of €66.5 million given to Aifca Ltd of Upper Mount Street in Dublin in 2006 to refinance debt and to acquire a company involved in the development of The Square shopping centre in Tallaght.

Defending the application, Hugh Mohan Senior Counsel for Aifca, agreed that the loan agreement given by the building society to INBS said it was for a two-year term, repayable at any time and contained a moratorium on repayment of interest and capital during the duration of the loan.

But he said as a director of the company, Liam Carroll did not believe the loan was ever meant to be an 'on-demand' facility or repaid within two years. He said part proof of this was the moratorium on repayment on interest and capital.

But Mr Justice Peter Kelly said despite Mr Carroll's claims, there was no evidence that INBS did not intend the loan to be repaid within two years. He also noted that there was also no other evidence submitted in defence of the application by the other two directors of the company, Larry O'Mahony and Tom McFeely.

Justice Kelly said that while the threshold for sending applications for summary judgement on for full hearing was a low one, he could not do so on the basis of a 'mere assertion' from Mr Carroll. He therefore granted INBS judgement against Aifca for €78.6 million, and refused to put a stay in place pending an appeal.

The court also began hearing the application from INBS for a summary judgement against Mr Carroll personally, on foot of a €60 million guarantee for the loan which the bank claims it received from the developer.
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RTÉ Business: INBS wins case against Carroll


No nama for him then ,Is this the largest settlement of this kind in legal history ?

[toxic avenger]

Noel Smyth will be happy...

[mmrebel]

Noel Smyth will be happy...

A lot of other developers are quaking in their boots id say.

[toxic avenger]

The irony of Irish Nationwide's action against Liam Carroll

[mmrebel]

Just saying on news that his 6 of companies are going into examinership owing over
1 billion

[Digout]

NAMA wont happen lads. FF know this also.

[mmrebel]

NAMA wont happen lads. FF know this also.

When banks are looking for their pound of flesh in this manner.

Although ACC is owned by rabobank it could be the case by the time the Dail sits again the foreign banks that are owed money may own all this land and buildings due to court judgements.

Where's Nama then ?

[Digout]

Where's Nama then ?

NAMA cant work, FF know this. The reason is the complex web of leveraging that existed, i would call it fraud.

If NAMA was to be setup the fraud will be exposed, further highlighting FF incompetence.

[powderfinger]

Just saying on news that his 6 of companies are going into examinership owing over
1 billion

The application for examinership from another troubled developer was refused by Mr. Justice Frank Clarke in the High Court today.
Laragan Developments,a subsidiary of the Hanly Group ,was placed in temporary liquidation.

House-building firm Laragan to be wound up - The Irish Times - Fri, Jul 17, 2009

Do these 6 companies now enter the same process?

[anewbeginning]

There is no need for NAMA.

Let the banks get their pound of flesh and through the commerical courts. Let the banks and developers handle the legal costs and details.

Don't set up a massive bureaucracy called NAMA, akin to another Tribunal and going on for decades, with Senior Councils arguing against Senior Councils in the High Court over the right of NAMA to do this and that, and all at a cost to the taxpayers.

The Carrol case must be the prededent for hunting down the developers, seizing their landbanks and fixed assets in Ireland.

Most of these properties were effectively stolen or gained under fraudulent practises and so the developers have no rights to them.