ACCBANK HAS secured summary judgment for €3.2 million over loans advanced to develop the Western Hotel and associated nightclub in Claremorris, Co Mayo.

There was no appearance by or on behalf of Paul and Anne Hanley, Dalton Street, Claremorris, owners of the Western Hotel, Dalton Street, at the Commercial Court yesterday when the case came before Ms Justice Mary Finlay Geoghegan.

James Doherty, for ACC, said he was not anticipating any appearance by the defendants who had been personally served with the proceedings. Solicitors had also written to the bank indicating there would be no appearance by the couple and no defence offered.

Ms Justice Finlay Geoghegan said she was satisfied the couple had been served and the eight-day period for entering an appearance had expired. In the circumstances, she was prepared to enter judgment in the sum of €3.2 million against both defendants.

In its claim, ACC said the defendants had in May 2008 accepted a €3.4 million loan offer to refinance existing debt on the hotel and to fund the construction of a new nightclub, ground floor kitchen and car park.

ACC said the loan was secured by a first legal mortgage and charge over the hotel, incorporating the publicans’ seven day licence and an assignment of mortgage protection. It claimed Mr Hanley had later, without the bank’s consent, purported to enter into a lease relating to the hotel with a limited liability company, Strigxis Ltd, of which the couple were directors, for a period of nine years and nine months from December 2008.

It claimed that company went into creditors’ voluntary liquidation in September 2010.

The bank claimed the defendants made monthly payments under the loan agreement up to October 2010 when default arose. In late November 2010, the bank demanded repayment of the loan within seven days. After no repayment was made, the bank appointed a receiver last January.