Bank of Ireland is pursuing the father of former Ireland and Munster rugby player Frankie Sheahan for some €2.9 million over his alleged guarantees of some loans advanced to his sons Frankie and Joey.
In correspondence with the bank last month, Frank Sheahan snr had expressed disappointment that none of the repayment proposals advanced on behalf of his family were accepted, asked for further talks and argued there would be “no winners” in litigation.
‘Second chance’
His sons currently have no salary or regular income, “deserve a second chance” and should not be forced into bankruptcy which would have “devastating effects” on them and their families and was not in the interests of the country or the bank, he said.
The bank said it had considered Mr Sheahan’s request but believed it was not appropriate to defer the legal action.
The case was transferred to the Commercial Court yesterday by Mr Justice Peter Kelly, who made directions for exchange of legal documents between the sides.
The bank’s move comes after what it said was a failure to reach a “mutually acceptable solution” following lengthy negotiations between it and the Sheahans over repayment of outstanding sums on loans advanced by Bank of Ireland Mortgage Bank to buy residential properties for rental purposes.
The bank last year appointed Michael McAteer of Grant Thornton as receiver to 17 residential properties of the Sheahans, located in Cork and Greystones, Co Wicklow.
In separate High Court proceedings yet to be heard, Frankie and Joey Sheahan contend the receiver’s appointment is invalid and that certain alleged actions of his, including changing locks on properties, may damage their business.
That action, by the brothers and mymortgages.ie, of which Frankie Sheahan is a director and employee, is against Bank of Ireland, Bank of Ireland Mortgage Bank and Mr McAteer.
