A BANK has brought court proceedings aimed at clearing the way for the sale of two well-known Dublin city centre pubs - Conway's and the Parnell Mooney, of Parnell Street - to clear debts of some €6 million due to it.
Conway's closed down last February after losing its licence and a developer has offered to buy it for €4 million while the Parnell Mooney has been valued at some €3 million.
Permanent TSB is seeking orders for possession of both pubs against Edward O'Donoghue and Philip Mahon, who claim to be the legal owners.
The bank says Conway's is mortgaged to it on the basis of loan facilities secured in 2000 on a pub in Portlaoise owned by the defendants who then further mortgaged Conway's in 2005 to secure their debts relating to the nearby Parnell Mooney bar.
The bank claims that, despite demands, the defendants had neglected or refused to repay the some €6 million due to the bank.
Brian Murray SC, for the bank, said yesterday he didn't believe the defendants were objecting to an order for possession. If there were any affidavits by other parties objecting to the orders, he asked that they should be with his side by Wednesday.
The bank's proceedings were entered by Mr Justice Peter Kelly into the list of the Commercial Court yesterday.
Two weeks ago, the judge entered related proceedings between the owners of the pub and Daniel Ryan, its former manager, who claims he was a partner in the pub and holds a beneficial interest in the premises.
In those proceedings, Mr Ryan claims to have a one-third beneficial interest in the pub and to have had a partnership agreement regarding its operation.
Mr Ryan is also claiming that he sought to buy the pub from the defendants but was unable to raise the necessary finance as, he claimed, the defendants had not provided him with the information necessary to do so.
In relation to the bank's proceedings, the judge was told yesterday that Mr Ryan is expected to seek to be joined to those and to oppose the possession application, which will be heard early next month.
Conway's is mortgaged to Permanent TSB on foot of loan facilities secured on another property owned by the defendants, Ramsbottom's pub in Portlaoise, Co Laois. The defendants further mortgaged Conway's to secure their debts relating to the Parnell Mooney and Mr Ryan claims they acted wrongfully in doing so.
The defendants believe the value of the premises is some €3 million on the open market but say they had agreed for its sale for a special price of €4 million to the development company, Chartered Land.
This was because the premises was of special value to Chartered Land as the site was adjacent to a collection of sites in the O'Connell Street and Parnell Street area which Chartered Land was assembling for development purposes, they said.
However, Mr Ryan has lodged a lis pendens (legal objection) over the Conway's premises and the defendants and the bank are concerned this may frustrate the proposed sale.