Mansfield must pay bank €214m

BANK OF Scotland has secured some €214 million summary judgment orders against hotelier Jim Mansfield arising from his personal guarantees of debts of three of his companies. The National Asset Management Agency last month obtained a €74 million summary judgment order against the businessman.

Mr Justice Peter Kelly ruled yesterday that Mr Mansfield had made out no arguable defence to the bank’s claim and entered summary judgment for €214,122,346, plus costs, in favour of the bank. The defence advanced was implausible, the judge said.

Mr Mansfield, Tasaggart House, Saggart, Co Dublin, was not in court. Medical reports have stated he suffers from a number of conditions, the most serious being multiple system atrophy.

He was sued under his guarantees of sums due by three companies – HSS, Jeffel and Park Associates. About €151.5 million was due under the HSS guarantee, €41.2 million under the Jeffel guarantee and €13.6 million under the Park guarantee. With interest, the bank’s total claim exceeded €214 million yesterday. Bank of Scotland appointed a receiver to HSS in July last year.

Cian Ferriter SC, for the bank, opposed an application by Patrick Leonard, for Mr Mansfield, for a stay on the judgment order.

Nama had already secured a substantial judgment against Mr Mansfield and the bank’s demands for repayment dated back to July 2010, counsel said. On those and other grounds, the judge refused a stay. In his reserved judgment, the judge ruled Mr Mansfield had no arguable defence to summary judgment on grounds including the bank’s failure to honour an alleged 2008 agreement by it to lend more money to complete the Citywest convention centre leading to the collapse of the Mansfield group.

He noted it was claimed the bank agreed in early 2008 to advance substantial funding to complete the centre, which had full planning permission, and, in anticipation the group committed its own funds. About €10 million was spent from Mansfield group cashflows, money borrowed by the Mansfields and from the sale of group assets, it was claimed.