ALLIED IRISH Banks (AIB) has brought a court action to overturn a businessman’s transfer of lands in Co Kildare to his wife. The bank claims the transfer is a fraud on creditors and an attempt to frustrate its efforts to secure repayment of a €6.7 million judgment obtained against Raymond Nolan and another man.
The lands include 20 acres at Brownstown, Kilcullen, Co Kildare, valued at about €6 million in 2006 but now said to be worth less than €1 million.
In proceedings which opened at the Commercial Court, AIB wants orders setting aside the February 2009 voluntary transfer of the lands by Mr Nolan, of The Orchard, Carnalway, Kilcullen, to his wife, Helen. AIB says it only learned of the transfer in late 2009.
Paul Gardiner SC, for the bank, said the transfer amounted to a fraud on creditors and should be declared void. AIB has also registered a lis pendens (legal notice that the lands are the subject of legal proceedings) over the lands.
The Nolans deny the bank’s claims and have accused the bank of reckless lending.
Yesterday, AIB official Norma McCarthy agreed it was “fairly substandard” for the bank to have agreed to lend the money in 2006 without confirming the bank had proper security for the lands.
Mr Nolan and Edward Kinirons, Ladytown Stud, Naas, consented in May 2010 to judgment orders for €6.7 million against them over failure to repay a facility of March 2009 that refinanced a previous loan of €5.6 million given in 2006 to buy seven acres of lands at Naas Road, Kilcullen. Mr Gardiner said the land was bought at auction by Mr Nolan and Mr Kinirons without any financing. After Ulster Bank refused funds, AIB offered to finance the project.
By July 2008, the loan was in default and the bank sought additional lands as security.
AIB claims its security for the loan included a charge over 20 acres at Brownstown, then in the name of Raymond Nolan, and a charge over the lands at Naas Road, Kilcullen. Mr Nolan had also provided a statement indicating his net worth in June 2006 was about €15.5 million and included among his assets the Brownstown lands, accompanied by a valuation of €6 million, the bank claims.
AIB claims Mr Nolan twice told its officials at a meeting in January 2010 that the Brownstown lands were owned by him but later conceded at the same meeting he had transferred lands into his wife’s name. The case continues today.
