THE 10 Anglo Irish Bank customers who borrowed from the bank to buy a 10 per cent stake in the lender owed sums ranging from €9.7 million to €56.5 million just before the bank was nationalised last January, according to internal records seen by The Irish Times.
This newspaper has confirmed the customers and loan amounts at the start of this year were: Jerry Conlan, property investor and owner of a hospital chain, €56.5 million; Patrick Kearney, a Northern Irish developer, €46.6 million; Seamus Ross, a developer and hotel owner, €46.4 million; Gerry Gannon, a Dublin-based developer, €46.4 million; Joe O’Reilly, the developer behind the Dundrum Town Centre in Dublin, €43.4 million; Brian O’Farrell, a north Dublin auctioneer and property developer, €41 million; Paddy McKillen, a Dublin-based developer, €38.9 million; Gerry Maguire, the owner of shopping centres in Drogheda and Dundalk, €31.7 million; John McCabe, a Meath-based builder, €31.6 million; and Sean Reilly, a Meath-based developer, €9.7 million.
Mr Conlan said he had “no comment to make” when contacted. A spokesman for Mr Kearney said his client had no comment. Mr O’Farrell said: “I am not going to comment on that.” Mr O’Reilly said he was unable to make any comment. Mr McKillen said he would return a call about a query relating to the loans but didn’t. When told about the nature of the query, he said: “Brilliant – appreciate that, thanks.” Calls to Mr Ross, Mr Gannon, Mr Maguire, Mr McCabe and Mr Reilly or their offices, seeking comment, were not returned.
The loans to the 10 long-standing customers totalled €392 million as of last January, the records show, and are listed by the bank as “personal” borrowings. The bank also noted there had been a decline in the value of the security backing the loans.
This refers to the fact three-quarters of the money borrowed by each individual was on a “non-recourse” basis, backed only by the shares they bought in Anglo Irish Bank with the money, meaning they could not be pursued for this part of the loans.
The bank’s shares are all but worthless following its nationalisation in January. Anglo Irish – now owned by the taxpayer – expects to write off about €300 million in respect of these loans.
Senior executives at Anglo organised the purchase of the 10 per cent shareholding – from businessman Sean Quinn – in a private transaction during the summer of 2008 to avoid the shares being disposed of on the open stock market, as this would have affected the share price at a time of severe volatility.
A spokesman for Anglo declined to comment, saying the bank could not discuss customers’ affairs due to confidentiality.
