THE TWO brothers behind one of the first construction businesses to fall victim to the crash are suing the bank that is pursuing them on foot of personal guarantees.

Michael and John Taggart, whose property and construction empire collapsed with debts estimated at between €150 million and €300 million in October 2008, are suing Ulster Bank reportedly for £120 million.

The bank has already begun action against the Taggarts to recover debts which they personally guarranteed before the company was placed in both administration and receivership in 2008.

The bank is due to go to court in Belfast next Monday to pursue its case against the developers.

While the bank is a secured creditor, there are a large number of unsecured, trade creditors who have yet to recover the money they are owed by the Taggart group.

The Taggarts are said to be making a number of claims against the bank, including breach of contract and misrepresentation, and their damages claims include a claim for loss of earnings, arising from the fact that the bank moved against them too quickly in October 2008.

Last year, Michael Taggart told a television interview that he intended taking legal action against Ulster Bank. At the time, he said the business could have reduced its debts if it had more time. That interview indicated that the relationship between the Taggart group and the bank had soured before the group was placed in administration.

Ulster and Bank of Ireland appointed PricewaterhouseCoopers as administrators to the Co Derry-based Taggart Group’s operations in the North, and as a receiver to its businesses in the Republic (there is no administration in the Republic’s company law code) in 2008.

The Taggarts had grown their business rapidly on the back of property and building booms in Ireland and Britain. At its height, the group had operations in Ireland, North and South, Britain, and the Isle of Man. However, once the market turned in 2007, its business declined rapidly.