BANK OF Ireland is seeking judgment orders for €17.4 million against a property developer under personal guarantees provided by him on certain loans to three of his companies. It is also seeking possession of unsold residential properties on a site in Athlone.
The action against Pearse Gately, Millicent South, Sallins, Co Kildare, was transferred to the Commercial Court yesterday by Mr Justice Peter Kelly.
The case arises from personal guarantees allegedly executed by Mr Gately and others over loans made on dates in 2004, 2006 and 2007 to his companies, Gateway Properties Ltd (formerly RRI Developments Ltd), GK Building Company Ltd and Ichleigh Developments Ltd.
The bank claims the final repayment dates for the loans were December 2006 in the case of Ichleigh, December 2007 for GK and December 2008 for Gateway. The bank demanded repayment from all three companies on dates in March and May last but claims all three companies had failed to make payment.
Arising from those failures, the bank appointed Kieran Wallace as receiver over all three companies in May last year, John Hennessy, for the bank, said.
In that same month, the bank also demanded payment of €17.3 million from Mr Gately on foot of his personal guarantees but no payments were made. With interest, more than €17.4 million is due, the bank claims.
Transferring the case, Mr Justice Kelly said he was satisfied the best way to deal with all the matters was in the Commercial Court.
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