Two Galway businessmen are being pursued by Zurich Bank for more than €16 million under personal guarantees over loans made to a construction company.
The bank has brought its action against Donal O'Connor, Stradbally East, Clarenbridge, Co Galway and Martin Roche, of Aille, Loughrea, Co Galway.
Mr Justice Peter Kelly transferred the proceedings to the Commemrcial Court yesterday and returned the matter to tomorrow (Friday ) when both defendants will be asked to outline the nature of any proposed defence to the application for summary judgment orders.
The Bank claims it advanced some €8.46 million in June 2007 to MJ Roche Construction (Clarecastle ) Ltd to finance a commercial development at Clarecastle, Co Clare. A receiver was appointed over the company last July.
Both defendants were directors of that company and the terms of the June 2007 loan required them to provided a joint and several guarantee, supported by security, the Bank said.
It claims both defendants had also entered into a guarantee in September 2007 guaranteeing payment on demand of all present, future, actual, or contingent liabilities of the company to the bank.
It is claimed the €8.46 million facility was later increased to a maximum €11.96 million with a final repayment date of May 2010. However, an event of default had occurred entitling the bank to terminate the facility and demand imediate repayment, it is claimed. Repayment was demanded in June last but was not made and more than €7.3 million is due and owing under that facility, it is claimed.
After alleged default on repayments on another facility, the Bank claims a further €8.9 million is also due and owing under that and both defendants are required to discharge that sum.
