ACC entitled to €1.08m orders over Skylab loans

ACC BANK is entitled to €1.08 million summary judgment orders against businessmen Jay Bourke and Eoin Foyle arising from loans related to the Skylab building at Exchange Street in Dublin, a High Court judge has ruled.

Mr Justice Kevin Feeney yesterday found Mr Bourke and Mr Foyle had failed to make out any arguable defence to the bank’s claim such as disentitled it to summary judgment and ruled the bank was entitled to those orders, plus costs and interest. He placed a stay on his order for four weeks.

Mr Bourke, Leinster Road, Rathmines, Dublin, and Mr Foyle, Charleville Road, Rathmines, Dublin, opposed the application on grounds including alleged contributory negligence by ACC in failing to engage with their proposals for buying out of their debt and for purchase of the Skylab building by their business partner, Jan Kohler.

The Commercial Court was told Mr Kohler, who owns 50 per cent of the building, is not in default on any loans. ACC had argued there was no dispute the loan was made and drawn down and said, even if the building was sold, it could take a year.

Mr Justice Feeney adjourned the matter to yesterday to receive a report from ACC-appointed receiver Declan Taite addressing some of the issues raised, after which he gave his decision. The judge found neither defendant had raised an arguable defence on the issues such as required the matter to proceed to plenary hearing.

ACC claimed some €1.084 million was owed by Mr Bourke and Mr Foyle under a facility letter of May 2008 under which loans were advanced to finance and fit out the Skylab. Repayments were not made under that facility since June 2010 and some €1.084 million was due and owing by both defendants, it said.

Last November, ACC appointed Mr Taite as receiver and manager over the interests of Mr Bourke and Mr Foyle in the Skylab. While the Skylab was a secured asset, the bank said it was unlikely it would be realised in the short to medium term and, when realised, there was likely to be a shortfall.

Skylab was valued at more than €6 million at the height of the boom, but has “devalued very considerably”, the court had heard.

In an affidavit on behalf of himself and Mr Foyle, Mr Bourke said ACC had advanced funds to refinance his 25 per cent share of the costs of developing and fitting out the Skylab and entered into a similar agreement with Mr Foyle and Mr Kohler, with Mr Foyle holding a 25 per cent stake in the property and Mr Kohler holding the remaining 50 per cent.

All funds advanced to him were secured against his interest in the property and he made proposals to ACC to deal with the debt but it failed to address those in a timely fashion, he alleged.