Century Homes founder to pay €2.7m

Century Homes founder Gerard McCaughey has agreed to repay sums totalling about €2.7 million to Irish Bank Resolution Corporation, but is disputing liability for additional sums totalling about €5 million.

Mr Justice Peter Kelly heard final arguments in IBRC’s application for summary judgment against Mr McCaughey yesterday and said he will rule on the matter next Wednesday.

IBRC had sought summary judgment orders for some €7.7 million against Mr McCaughey over various unpaid property investment facilities. He opposed its application in relation to certain facilities on grounds including alleged mis-selling of those by the former Anglo Irish Bank. He sought a full hearing in relation to whether he has a liability concerning those facilities.

Yesterday, Cian Ferriter SC, for IBRC, said Mr McCaughey had agreed to repay some facilities totalling about €2.7 million. If those facilities are not repaid on the agreed dates of January 31st and February 28th, then IBRC has liberty to obtain judgment in the relevant sums, Mr Justice Kelly was told. Patrick O’Reilly SC, for Mr McCaughey, confirmed the agreement.

Mr McCaughey contends he has an arguable defence to the remaining €5 million of the amount sought but IBRC denies that.

The case relates to five loan facilities advanced to Mr McCaughey, who now lives in Manhattan Beach, California, and whose Century Homes company has been taken over by Kingspan.