A businessman whose life's work was described as about building up Gorey Business Park in Co Wexford, employing more than 400 people, has urged a judge not to grant a bank's bid for €6.2 million summary judgment against him over loans secured on the park.
KBC Bank has said its application against James Osborne is part of an "enforcement strategy" it had "reluctantly" decided to follow. It has also appointed a receiver.
At the Commercial Court on Wednesday, Mr Osborne, Fort Road, Gorey, representing himself, argued he has a defence to the bank’s claim entitling him to a full hearing.
The business park is “extremely viable”, with almost 100 per cent occupancy of retail units there, he said. He had engaged so much with KBC about the park, including in relation to fire safety and other works, he felt they were “in partnership” but he was concerned the bank’s approach and plans for sale would not realise its full value.
He did not want Allsop in, he added. Work at the park is continuing, all the employees are working and the value of the asset was being maintained, he said. “Had I gone for what KBC wanted, it would have closed with no-one working.”
If it was established he owes the money claimed, he would make sure it was repaid, Mr Osborne added.
Rossa Fanning, for KBC, said he appreciated the business park represented Mr Osborne’s “life’s work” but, he submitted, Mr Osborne had advanced no legal basis allowing the court refuse summary judgment. The loans involved were clearly commercial loans, counsel said.
Mr Justice Max Barrett said he would rule on the banks’ application within two weeks.
KBC is pursuing Mr Osborne arising from loans related to the acquisition and development of units at the business park. In court documents, the bank said it issued various loans to Mr Osborne on dates from 2002. Various facilities had been repaid and the bank also agreed to restructure certain facilities.
The bank said it had also over a number of years asked Mr Osborne to provide additional security over that part of his interest in the business park which was not secured but the additional security was not forthcoming. The bank also sought assignment of certain leases but those were not provided, it said.
It appeared the business park generated annual rental income of some €603,000 but that was not being paid to the bank depsite conditions in the facility letters, the bank said.
Mr Osborne had only made repayments of some €25,500 for 2014 and to date in 2015 despite the value of the rental yield, the bank said.
Last September, the bank made formal demand on Mr Osborne for immediate payment of some €6.2 million, being the total sum owed to it, it was stated.
This case was taken “with reluctance” when it became clear it would not be possible to reach a consensual agreement regarding the defendant’s obligations to it, it added.
