Businessman backs Gilmartin re: Lawlor Claims - RTE

[the-analyst2007]

Businessman backs Gilmartin re: Lawlor Claims - RTE

According to RTE:

A property adviser has backed-up an allegation by Tom Gilmartin that Liam Lawlor sabotaged his development plans by telling British investors that Quarryvale was in bandit country.

UK adviser Richard Forman also told the Mahon Tribunal only AIB knew of the investors' meeting and that the bank was involved in a 'most irregular' attempt to bring in a rival developer to Quarryvale.

Richard Forman said Tom Gilmartin was close to signing an agreement with the British company Heron in 1990 as a development partner.

But the late Liam Lawlor arrived uninvited to a lunch following a site visit and made remarks to the British businessmen about 'mad dogs' and 'bandit country'.

Mr Forman said Mr Lawlor had sown the seeds of doubt and undid all the work in persuading the investors about the stability of the Irish property market. They pulled out afterwards.

Mr Forman added that the lunch was not pre-booked and only AIB knew about it.

He said AIB was trying to get Mr Gilmartin to hand over the Quarryvale project to developer Owen O'Callaghan.

He said the bank had an aggressive attitude and was arranging meetings at a moments notice with the sole purpose of abusing Mr Gilmartin.

Mr Forman admitted the bank was owed nearly £9m by Mr Gimartin but he said it could have recovered its money by forcing the sale of the land.

He said the fact they did not do that showed they believed Quarryvale would succeed.

Full story at:http://www.rte.ie/news/2008/0430/mahon.html

[HanleyS]

Is Foreman's evidence direct or hearsay?

[the-analyst2007]

He is giving evidence on oath today. From my understanding he was present at the meeting which Lawlor arrived to uninvited.

[stanley]

Tommy G in his evidence said Lawlor did this more than once but the implication that only AIB knew of the meeting and Lawlor turns up is new as AIB found him to be more than distasteful so someone was acting as a messenger, OOC ?

[HanleyS]

He is giving evidence on oath today. From my understanding he was present at the meeting which Lawlor arrived to uninvited.

I guess that's direct evidence then.

[loner]

Another interesting development which if accurate raises very serious issues.

[stanley]

Having read the transcript Forman was present when Lawlor attended uninvited and it would appear that info as to where they were dining was passed on by AIB.
Nesbitt set about the witness today trying to earn his corn, he seems to be trying to discredit the opinion of Forman as a valuer and make AIB look like an archangel who had helped out a sinner, Tommy G, now all they wanted, having stood by him, was their money and interest back.
Nesbitt makes it appear it was TG's sole idea to bring in OOC purely on the basis on his track record in Irl and TG's lack of local experience.
Forman was convinced that given TG's initial investment in the site, AIB could and would have got back their money without bringing in OOC and Nesbitt sought continuously to discredit this strong held opinion.
The alleged clear undertone is OOC knew where to place the bribes and effect corruption, TG did not,
AIB wanted to make a lot more dough that just the interest on TG's borrowings, they wanted in on the deal to whoever it was going to be sold onto and beyond and their chosen partner was OOC to effect their strategy.

[loner]

Reenforces me in my view that Gilmartins coming to Ireland was somewhat akin to the poor guy in the Gospels who was set upon on his way to Jericho ---- it is a salutary lesson for people coming here to do business and the Govt Ministers who have been out and about defendind what happened and berating the Tribunal should hang their heads in shame

[CitiZenJon]

Developer Tom Gilmartin's former business partner, Richard Forman, told Tribunal counsel Patrick Quinn SC of "undue pressure" brought to bear against the original planner of the Liffey Valley Centre by AIB.

Gilmartin, who owed the bank 4.5 million, "was placed under undue pressure to transfer his equity."

Mr. Forman remembered some bank officials being aggressive and abusive during board meetings of Barkhill Ltd. On one such occasion Cork developer Owen O'Callaghan attended such a meeting in AIB, ballsbridge. Mr. Foreman found O'Callaghan's attendance at the board meeting unusual, having never met the man before. AIB demanded 60% of Gilmartin's company, introducing O'Callaghan as the new partner, controlling 40%. This acquisition of their customer's company involved extending the terms of finance on Gilmartin's debt to the bank.

From this point on Gilmartin was excluded from board meetings and executive responsibility in Barkhill despite the fact he was co-director of the company and held a 40% shareholding.

In order to maintain his stake, and improve the value of the lands, Gilmartin and Forman tried to market the potential of Quarryvale to UK retail suppliers.On one such occasion in September 1990, Gilmartin took two possible investors to dinner after visiting the site, during the meeting Mr. Gilmartin received a call from AIB's MB. Before the dinner concluded TD Liam Lawlor (deceased) appeared at the restaraunt. Mr. Lawlor introduced himself to the two investors as the local representative for the area. At one point joking that the lands were in "bandit country" populated by "mad-dogs". Mr forman said: "We tried to make light of his comments, but Mr Lawlor's intervention had sowed the seeds of doubt in our investors."

The clients decided not to proceed.

[toxic avenger]

He not only backed up Gilmartin on the Lawlor sabotage, but also on AIB's role in it, they were the only people who could possibly have known where the lunch was taking place. I'll be going to AIB any time I have a good idea, no rats to be smelt there at all... He also contradicted the AIB's claims that they had to bring in OOC because Gilmartin's equity was gone, he said that was nonsense, no UK bank he had ever dealt with would operate that way. Gilmartin has never denied that AIB had a right to call in their money, but furiously rejected their right to force OOC in on the deal. Forman also said it was puzzling that AIB would then allow OOC to get 40% without ANY equity investment. Why was that? What 'comfort' could he give the Bank?...