Businessman consents to €2.7million summary judgment order

Galway businessman John Sweeney.

Galway businessman John Sweeney.

Galway businessman John Sweeney, whose Black Shore Holdings company was wound up last week, has consented to a € 2.7 million summmary judgment order being made against him at the Commercial Court over unpaid loans.

HSBC Private Bank Ireland sought the order arising from a €2.7 million loan extended to Mr Sweeney under a loan facility letter of December 2007 for the purpose of providing a line of credit to enable him to undertake various investments, subject to approval by the bank.

When the proceedings came before Mr Justice Peter Kelly at the Commerical Court on Monday, he was told Mr Sweeney, Goreen, Gortacleva, Bushy Park, Galway, was consenting to judgment in the sum sought. Judgment was entered in the amount of €2,762,868.

The bank claims Mr Sweeney had in January 2008 executed a mortgage of shares as a continuing security for the debt and had also in October 2009 granted a mortgage in favour of the bank over a €3 million life assusrance policy held by him with Zurich Life Assurance Company of Ireland ltd.

It was claimed Mrs Treena Sweeney, wife of Mr Sweeney, had agreed to execute second ranking charges over various properties as additional security and Mr Sweeney had also agreed to provide a mortgage over all receivables due to him from Black Shore Holdings Ltd and its associated companies.

Those securities were to be in place by August 31 2009 but to date a sceond ranking charge had been executed only in relation to two properties, the bank said. It added it attributed no value to that security in circumstances where prior ranking security exists. It also added no mortgage has been put in place in relation to the receivables.

The bank claims its loan facility was repayable on demand and it had on February 1 demanded that payment be made, with continuing interest, by February 9. No payment was made, it said.

The bank noted a petition to wind up Black Shore Holdings Ltd (BSH ) was presented to the High Court on January 7 last while a petition was also presented for the appointment of an examiner to four companies in the Black Shore group, including Slyne Properties Ltd.

Last week Mr Justice Brian McGovern made an order for the winding up of BSH, the insolvent holding company for the group of Black Shore companies. Those companies include a company which owns a 33 per cent stake in Dublin's Shelbourne Hotel.

The liquidator to BSH was sought by Esso Ireland, which was owed some €12.4 million, and the application was not opposed by BSH. A receiver was also appointed over BSH later on Wednesday last by Anglo Irish Bank.

Later last week, Mr Justice McGovern continued court protection for four companies in the Black Shore group which own or operate a number of Esso service stations, Spar stores and the Courtyard Marriott Hotel in Galway.

Anglo Irish Bank, owed more than €20 million arising from inter-company guarantees involving three of the companies, had strongly opposed examinership. The bank also said it intended to appoint a receiver over the companies as soon as it can. Court protection applies for a maximum 100 days.

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