Bank secures order against TD

ACC has secured summary judgment orders for €19 million against Independent Wexford TD and developer Mick Wallace and his company, M & J Wallace Ltd, which is in receivership.

Mr Wallace was present at the Commercial Court today when ACC applied to Mr Justice Peter Kelly for the judgment orders.

James Dwyer SC, for Mr Wallace, said the defendants had done their best to co-operate with the bank and the situation was "regrettable".

There were other creditors and the defendants could not resist the bank's application, counsel added.

Mr Justice Kelly, noting that no defence was being offered to the bank's application, said the case was appropriate for transfer to the Commercial Court and he would enter judgment as sought in the sums of €19,166,680 against the company and Mr Wallace.

The order against the TD arises from his personal guarantees of loan facilities made between 2004 and 2008.

The judgment orders were sought by James Doherty, for the bank, who said payments had been made under some of the facilities and the defendants were co-operative. Other of the facilities related to two developments in Dublin.

A good working relationship between the bank and defendants was in place in 2009 and 2010 and an agreed structure was in place to reduce the debts, counsel said. This changed later in 2010 when the bank received a report on the financial status of the company indicating it was seriously insolvent.

The bank appointed a receiver in May 2011 and later decided to issue these proceedings.

Mr Justice Kelly noted ACC had referred in an affidavit to there being other creditors of the defendants.

Declan Taite of FGS was appointed by ACC last May to a range of Wallace’s assets, including the Italian Quarter on Ormond Quay, the Behan Square apartment complex on Russell Street near Croke Park and development land in Rathgar. The bank had fixed charges on those assets.

Mr Wallace has previously said he owed €40 million to various banks. These are understood to include Ulster Bank, AIB and Bank of Scotland Ireland, as well as ACC.

If Mr Wallace is unable to repay the money, he could be declared bankrupt which would mean he has to resign his Dáil seat.

Speaking after the ruling, Mr Wallace said he accepted the ruling of the court. "I'm not in a very good position but I accept the judgment of the court. I borrowed the money, I can't pay it back so that's my problem," he said.

"As a public representative, I've a large responsibility to uphold the law of the land and that's what I'm doing... I've no idea what may happen next."