AIB wins court judgment of €10m

Allied Irish Banks plc has secured judgment from the High Court of more than €10 million against a family and their company for alleged unpaid loans relating to a proposed large apartment scheme in Letterkenny, Co Donegal.

Mr Justice Peter Kelly yesterday entered summary judgment in favour of AIB against five members of the McCafferty family - William and Bernadette, their son Richard, and daughters Ruth and Rachel - with addresses at Dartry Road, Rathgar, Dublin, and The Mall, Ramelton, Co Donegal - and McCafferty Developments, with a registered office at Gortmacall, Milford, Co Donegal.

The judge, sitting in the Commercial Court, the commercial division of the High Court, placed a stay on the judgment order for some €10.1 million plus interest on a principal sum, for a period of four weeks to allow the defendants explore options in relation to making payment.

The bank claimed that it had agreed in 2004 to advance various loans to the McCafferty Partnership, consisting of all five family members, to assist in the purchase of a warehouse and greenfield site at Port Road, Letterkenny, and the development of 64 apartments on that site.

It also claimed that, in consideration of the granting of a building loan to the defendant company, the five family members guaranteed to pay all sums of money due by that company plus interest.

It claimed there was continued and consistent acts of default in relation to repayment obligations.

Last November, the bank said it had made demands under the terms of the guarantee for payment of some €5.8 million being the then indebtedness of the company to AIB. However, that had not been paid. Interest also continued to accrue on other loans, it was claimed.