Lowry property deal was "O'Brien transaction"

A property deal involving Michael Lowry was a "Denis O'Brien transaction", the Moriarty Tribunal has heard. The Tribunal heard that Aidan Phelan, Mr O'Brien's accountant, told concerned bankers at Woodchester that they should not worry about an outstanding £0.5m loan, as it was a Denis O'Brien transaction.

The bank gave the loan to a company called Catclause thinking that Mr Phelan was behind it. In fact, the directors of the company were Michael Lowry and his daughter. It later emerged that the land involved was registered to a Mr Christopher Vaughan, who is Mr O'Brien's UK solicitor.

Mr Phelan went to GE Capital Woodchester in late 1999 and asked for a loan of £420,000. The former Woodchester Chief Executive Officer said today that he understood that Catclause was Mr Phelan's company. Michael Cullen also said that they were comforted when they were told that Mr O'Brien was aware of this transaction.

However, Mr O'Brien denies any knowledge of this and another property deal involving Mr Phelan and Mr Lowry. Woodchester is now Investech Bank and officials from their head office in London were angry when they discovered the reality of this loan and how it had been handled in Dublin.

The loan was extended without getting approval from London. Mr Culllen has described this matter as highly unusual. It was the bank who brought it to the attention of the Tribunal earlier this year.