Two brothers have brought a legal action to stop a company that acquired their multi-million euro property investment loans from Ulster Bank from enforcing repayment by selling off their secured assets.

Anthony and Gregory Alken, who owned and operated the Febvre wine importing business until they lost control in 2014, got loans from Ulster Bank totalling around €21 million.

They have asked the Commercial Court for various injunctions and declarations, including orders restraining Seaconview Ltd, which acquired their loans, acting as assignee of the Ulster Bank facilities in a manner inconsistent with an agreement providing, it is alleged, for no recourse to their secured assets.

Seaconview cannot demand or require payment of any amount under the original loan agreement and cannot demand an amount in excess of what Ulster Bank was entitled to, they claim.

Any enforcement action by Seaconview, including appointment of receivers over their assets, whigh is based on any demand in excess of what the bank had been entitled to is unlawful and invalid, it is alleged.

Receivers Declan McDonald and Ken Tyrell are also defendants to the proceedings.

In their action, the brothers claim they were required by Ulster Bank in 2014 to address their indebtedness and they had offered to repay in full by 2019-20.

They claim the bank instead asked them to refinance the loans themselves or sell certain assets, including Arena House in Sandyford, leased by Emile Investments Holding Ltd, owned by the brothers.

In an affidavit on behalf of both, Anthony Alken, with an address at Arena House, said it was agreed after negotiations that Arena House and other property would be sold or security released under a settlement arrangement which would repay the loans. Further funding would be provided by way of a debt purchase order, he said.

However, after Ulster Bank agreed last July to sell the loans, Seaconview demanded repayment and appointed receivers over the secured assets.

Seaconview denies it is bound by any settlement agreement the brothers had with Ulster Bank, he said.

Mr Alken said the brothers had fully co-operated with Ulster Bank on the understanding they were “not treated as people who do not wish to repay”. They wanted to “prudently wait until the value of assets had recovered somewhat”, he said.

The professed intention of Seaconview, in continuing to act in violation of a non-recourse agreement, will irreversibly harm them, he said.

Mr Justice John Hedigan admitted the case to the Commercial Court list on consent between the parties.