Purcell favoured by court ruling

A High Court judge yesterday granted an application preventing National Irish Bank taking steps, which could include the appointment of a receiver, to enforce securities relating to a £6.4 million (€8.1 million) debt allegedly owed by meat exporters Purcell Brothers.

Purcell claimed it was not liable for the debt. It claimed the debt was the result of unauthorised foreign currency speculation by a former managing director of the company, Mr Gerry Purcell. The company claimed NIB "facilitated and encouraged" the "speculation".

The bank denied those claims and said Mr Purcell was an experienced businessman who "knew what he was doing". It said the foreign currency transactions were an integral part of the company's business and claimed Purcell's court application was an attempt to avoid meeting its debts or, alternatively, reaching an agreement on the restructuring of those debts.

The bank also claimed Mr Gerry Purcell had debts of more than £3 million as a result of foreign currency deals with other financial institutions.

Giving his decision yesterday after a three-day hearing, Mr Justice Kearns allowed Purcell's application for an interlocutory order restraining the bank from moving to enforce securities held by it over Purcell assets pending the outcome of legal proceedings.

A condition of the injunction continuing against NIB is that Purcell must not dispose of any of its assets unless by agreement with the bank.

An offer by Mr Seamus Purcell, managing director of Purcell, to pay £35,000 a month between now and the date of the main court action regarding interest charges on the alleged debt was also incorporated into the judge's order.