Applications to stop sale of Jim Reynolds’s houses struck out

Applications seeking to restrain a financial fund from selling two Dublin 4 properties owned by Jim Reynolds, brother of the late former taoiseach Albert Reynolds, were struck out by consent in the High Court on Wednesday.

Mr Reynolds had obtained leave last week to serve short notice on financial fund Promontoria (Aran) Ltd and two of its receivers of his intention to restrain them from marketing or selling the two terraced houses owned by him on Elgin Road, Ballsbridge, Dublin.

Louis McEntagart, SC, counsel for Mr Reynolds, had also been granted leave to warn the three defendants of his client's intention seeking to restrain them from marketing or selling The Annaly Hotel, Main Street, Longford, which he also owns.

Discussions

Michael Cush, SC, who appeared on Wednesday with barrister Paul Fogarty, for Promontoria and receivers Kieran Wallace and Patrick Horkan of KPMG, told the court that as a result of ongoing discussions there was a prospect the parties would be asking for consent orders rather than a contested application.

Mr McEntagart, who appeared with barrister Daniel Simms, had earlier told the court Mr Reynolds would be seeking injunctions preventing the defendants from selling any of the properties or from inviting and accepting offers for them.

He had also told the court that a dispute had arisen over a claim that Mr Reynolds, now a retired businessman in his late 70s, entered into mortgage agreements in 2005 and 2009 with Ulster Bank in respect of the properties. Ulster Bank's loans had been taken over by Promontoria.

Judgments

Mr McEntagart, who also appeared with solicitors Tom Casey and Co, had stated that an unpaid demand in 2013 for €6.45 million had led to the bank seeking summary judgment against Mr Reynolds. This was refused and referred to a full High Court hearing which still remained to be determined.

Following all-day discussions between the parties Mr Fogarty, instructed by O'Brien Lynam solicitors for the defendants, told Mr Justice Raymond Fullam that a consent order had been agreed.

He said applications relating to proposed restraints relating to the two Elgin Road properties could be struck out and the question of the Annaly Hotel property adjourned until October 6th. Judge Fullam made the agreement an order of court.