A COUPLE who extended their family property to establish the Temple Spa hotel in Co Westmeath have consented to judgment for more than €5.78 million against them at the Commercial Court.
Mr Justice Peter Kelly agreed to place a three-month stay on the judgment order granted by him to ACCBank against Declan and Bernadette Fagan, Temple House, Horseleap, Moate, after hearing their home was affected by the guarantees provided by them over loans to Temple Spa Ltd for the hotel and spa development.
Martin Hayden SC said his client had no defence to the bank’s application. It arose from a loan extended for a business in the hospitality sector which had been affected by the economic downturn.
His clients could not meet the loan repayments but were seeking a stay on judgment as their family home was involved.
Mr Hayden added that the loans related to an extended country house property and a receiver had been appointed to the commercial side of the business which continued to trade.
Alison Keirse, for ACC, said she had no instructions in relation to the stay application. A receiver had been appointed last November but it later became clear the receiver could not clear the accrued debt and the proceedings were brought.
The case arose from guarantees provided by the Fagans over loans provided to Temple Spa Ltd, a company of which they are both directors. A €4.82 million loan was made to the company in 2004 and a further bridging loan facility was provided in early 2007. In October 2010, the bank demanded repayment under the facilities.
It claimed the couple’s liability arose from guarantees they provided in October 2004 for payment of existing and future liabilities of the company in connection with the loans.
A receiver was appointed over all the assets of the company last November and also over the couple’s interest in their home, hotel and spa facility.