ANGLO IRISH Bank has brought High Court proceedings for possession of the home of former Smart Telecom CEO Oisin Fanning over his alleged failure to repay €8.6 million in loans and interest.
Mr Fanning is opposing a court bid by the bank to gain possession of his home on 24 acres in Co Kildare. He claims he was pressurised into taking out the loan by businessman Brendan Murtagh and Anglo gave him the loan only on the urging of Mr Murtagh, a long-standing business customer of the bank. Just two years earlier, Anglo told him it was not interested in funding either him or his company, he claims.
The bank claims Mr Fanning and his partner Pearl Roche have defaulted on a loan given in 2006 to enable Mr Fanning buy €5 million of shares in Smart and to allow Mr Fanning and Ms Roche refinance an existing €2.9 million mortgage on Forenaughts House. More than €8.6 million is now due, it says.
Mr Fanning said he was surprised that Paul Corry of Anglo, who dealt with the loan application, “appeared not be concerned in any way” about his ability to repay despite his “limited earning capacity”.
Ms Justice Elizabeth Dunne will rule on Thursday on the bank’s application for court orders requiring the couple to deliver up vacant possession of Forenaughts.
Mr Fanning was in court yesterday and denies responsibility for the repayments. He claims Mr Murtagh, who took over Smart Telecom in 2006, pressurised him into taking out the loan after insisting he, as then CEO of Smart, had to be seen to be investing in the company.
Mr Murtagh “gave me his word that under no circumstances would my family home be at risk”, he claims. The loan was really to Mr Murtagh who knew Mr Fanning would be unable to repay it and who agreed to make repayments from Smart, it is claimed.
Mr Fanning also argues the house is protected under family home legislation because it was bought when he was married to Susan Fanning in 1995. In separate actions involving Smart and Mr Fanning, he is claiming indemnity against Mr Murtagh over the Anglo loan while Smart alleges he unlawfuly diverted to his own use the option to acquire the freehold interest in Smart’s corporate headquarters at Citywest Business Park.
