Bank sues pair for HQ purchase cash
TWO RESIDENTS of county Wicklow are being pursued by Bank of Scotland through the courts for monies relating to the €180 million purchase of the Bank of Ireland HQ in Dublin.
Patrick Fitzpatrick, Dargle Lodge, Cookstown, Enniskerry, has had his case adjourned to February to allow him, and others, to file defences.
Mr. Fitzpatrick's matter involves a sum of €3.7 million.
The bank has also sued Ronan O Caoimh, of Glencarrig House, Delgany, Co Wicklow, for €1.4m.
They are two of eight borrowers in the matter which dates back to 2006 and includes developer Derek Quinlan.
Quinlan has been ordered to repay €6.5 million to Bank of Scotland.
While the loan agreement had only limited liability for the bank to recover money, it is now seeking €25 million back from the eight parties.
BOS loaned €180 million in 2006 as agent for a syndicate of other lenders, and to a number of borrowers, for purchase of the BOI building.
The agreement provided that the bank's recourse to the borrowers was limited principally to the property, subject to stated exceptions.
The loan agreements also provided that if the value of the property was insufficient to meet the borrowing, the bank could not pursue the borrowers further.
However, BOS says that it is entitled to interest payable, and also to each borrower's recourse amount as identified by each borrower's agent, with the aggregate recourse sum being €25m.
The case has been transferred to the Commercial Court by Mr. Justice Peter Kelly.
