Anglo Irish Bank is seeking summary judgment orders for more than €15 million against financier Niall McFadden over unpaid loans and related guarantees.
The proceedings by Anglo were admitted, on the application of Bernard Dunleavy, for the bank, to the Commercial Court today.
In earlier separate proceedings against Mr McFadden, National Irish Bank is also seeking orders for some €15 million arising form loans and guarantees. Mr McFadden is resisting those orders.
In the Anglo case, Mr Justice Peter Kelly was told today by Rossa Fanning, for Mr McFadden, his client has a defence to the summary judgment application arising from earlier negotiations and agreements between the sides.
While it was admitted the money was owed, counsel argued the bank was stopped or prevented bringing its demands now in light of those negotiations.
Mr Justice Kelly said a line of defence had been raised and he adjourned the case to December 18th when he will decide whether the defence raised is arguable and adequate to allow the matter go to a full plenary hearing.
Anglo has brought the action over a loan facility letter of September 2008 for some €8 million under which it restructured an existing loan of Mr McFadden. It is also moving under a November 2008 guarantee and indemnity executed by Mr McFadden arising from a restructuring of the borrowings of Boundary Finance Ltd.
Anglo demanded payment under both facilities last October and initiated the legal proceedings after payment was not received. It is claiming summary judgment for €13.3 million plus the euro equivalents on the date of hearing of STG£326,649 and $2.46 million.
The cank claims the facilities were repayable on demand. Without prejudice to that claim, it said the combined facilities were repayable according to a specific schedule of repayments with the balance of both facilities to be repaid on or before June 30th, 2010.
While Mr McFadden had made certain repayments, he had not adhered to the repayment schedule and the bank was entitled to issue its demand, Anglo claims. It alleges Mr McFadden has no bona fide defence to the claim.
Mr Fanning, for Mr McFadden, said his client and the bank had had negotiations on a standstill agreement and there was an oral agreement last July related to the loan facilities. The negotiations broke down last October and it was Mr McFadden’s case the conditions imposed by the bank frustrated the oral agreement of July.
It was not disputed the money was owed but he was contending the bank was stopped from bringing the case arising from its agreement in July to forbear, counsel said. There were sufficient resources available to the bank to keep the facility up to date but it had blocked Mr McFadden’s ability to deal with his accounts, counsel added.
The separate NIB cases against Mr McFadden, to be heard early next year, arose after Mr McFadden put together a deal in 2007 to purchase the Buy & Sell classified ads business.
