ANOTHER BANK has brought a legal action against property developer Paddy Kelly over alleged unpaid loans.
The Irish branch of Investec Bank (UK) Ltd claims some €2 million is due and owing by Mr Kelly and his son Simon under guarantees relating to a loan advanced to help acquire the 40ft Bar Restaurant, The Pavilion, Royal Marine Road, Dún Laoghaire, Co Dublin, and allegedly drawn down by the defendants in June 2007.
It is claimed the loan plus any accrued interest and costs was repayable on January 1st last but had not been repaid. The proceedings were admitted to the Commercial Court yesterday by Ms Justice Mary Finlay Geoghegan and adjourned for a week.
Last month, ACC Bank secured court orders against Mr Kelly and his three children requiring them to pay some €16 million arising from guarantees over property and other loans. However, a stay was placed on registration or execution of those judgment orders pending the outcome of claims that the bank’s handling of various issues exacerbated the Kellys’ financial difficulties.
Those proceedings were against Paddy Kelly, Shrewsbury Road, Dublin; Simon Kelly, Dunganstown, Co Wicklow; Christopher Kelly, Clarion Quay Apartments, IFSC, Dublin; and Emma Kelly, Harcourt Terrace, Dublin 2.
Most of the €16 million claim relates to guarantees allegedly given by the Kellys over loans of late 2007 to Pressaro Ltd, with registered offices at Lower Baggot Street, Dublin, to buy what is known as the Cablelink/NTL property at Pembroke Place, Ballsbridge. That property was in 2007 valued at €27 million but is valued now at a maximum €8.5 million.
ACC claimed all four defendants entered into a guarantee in November 2007 over the Pressaro loan with some €16.9 million due and owing. The bank appointed a receiver over the assets of Pressaro last month. The Kellys argued they had a credible defence on grounds including, when Pressaro could not sell the Cablelink property, ACC refused to consent to its being leased for 10 years for an annual rent of €500,000.
