AIB has secured a Commercial Court judgement against a former Fianna Fail councillor and a former Offaly GAA football manager for the repayment of more than €15.5m.
Gerard Killally, of Shean in Edenderry and Richie Connor of Walsh Island, Tullamore, owe the money after failing to repay loans they took out with other business partners to buy development land in Offaly. The court heard that neither Mr Killally nor Mr Connor had opposed the bank's application.
In an affidavit, AIB said Mr Killally and Mr Connor, along with business partners Declan Guing of Carrick Road Edenderry and Frank Lawlor, Clonmullen Lodge in Edenderry, owe almost €5.4m on foot of a loan, used by them to buy 10 acres of development land at Daingean Road in Tullamore, Co Offaly in 2005. The bank is also owed €9.2m, after it lent money to the men in 2006 to buy 16 acres of development land at The Downshire in Edenderry Co Offaly.
The four men also owe €674,699 on foot of personal guarantees given by them to the bank for the liabilities of a company, Downshire Residential Property Limited. Mr Killally and Mr Connor also owe AIB more than €145,000 for money lent seperately to them by AIB through six accounts.
Earlier this month, Mr Killally and Mr Connor settled an action brought against them by Mr Guing and Mr Lawlor, who alleged the two men made secret profits of several million euro from four land deals. Mr Connor and Mr Killally had previously admitted in the Commercial Court to making secret profits from two of four land deals in which they were involved. But they had denied that they had made secret profits in relation to a further two deals.
Mr Guing and Mr Lawlor were also included on today's application by AIB for a judgement for the repayment of the money. However, Mr Justice Peter Kelly postponed making a decision on that part of the application, to allow the men's legal representatives further time to explore whether they wished to enter a defence. Mr Guing and Mr Lawlor are currently involved in separate litigation against the solicitor who acted for the former partnership through which the land deals were carried out.
