MARY CAROLAN
A judge has placed a four-week stay on a €1.9 million judgment order against Donal Morrissey snr over his guarantee to that amount of the liabilities of three companies linked to the Mount Wolseley hotel, golf and country club in Co Carlow.
Rossa Fanning, for Bank of Ireland, did not object to Mr Morrissey's application for the stay, sought so as to facilitate further talks with the bank.
The bank had brought proceedings in the Commercial Court seeking summary judgment against Mr Morrissey, of Mount Wolseley House, Tullow, arising from sums due on three facilities granted by it to Lismard Properties in 2011 and secured via guarantees from Lismard Properties, Lismard Enterprises and from Mount Wolseley hotel and club.
Mr Morrissey had also signed a guarantee and indemnity in regard to the facilities up to a maximum €1.9 million, the bank said.
On April 3rd last, the bank demanded repayment of some €28 million from the companies under the facilities. The following day it sought to appoint a trading receiver over the three, plus a fourth company, Mount Wolseley, but the companies sought and secured court protection and an examiner was appointed.
The bank later supported the examinership and the High Court last July approved a survival scheme for the Mount Wolseley hotel and club, employing 175 people, based on an investment proposal from Brehon Capital, mainly funded by the bank.
Earlier, on June 25th 2014, the bank demanded immediate repayment of the €1.9 million sum from Mr Morrissey and initiated proceedings when that was not paid.
In its proceedings, the bank said it had received a total dividend of some €6.7 million from the three guarantor companies whose total debt was some €28.7 million. That left a total shortfall of some €21.9 million which was clearly in excess of Mr Morrissey’s guarantee and indemnity, limited to €1.9 million, it said.
Yesterday, counsel for Mr Morrissey said that talks with the bank had not proven successful so far and his side was not opposing the application for judgment but wanted a stay for four weeks to allow for further talks.
