AIB is to enter mediation talks with six former senior executives accused by the bank of secretly scheming to take over the clients, business and staff of AIB's international financial services business for their own gain, the High Court heard today.
The bank has claimed the six were behind a management buy-out offer for AIB International Financial Services (IFS).
It alleges that they turned to their "Plan B" option by setting up a rival business to take over the clients, business and staff of IFS when AIB decided to sell the business to another group called Capita in June.
AIB claims that after 25 directors and employees left IFS between June and August, the other group, Capita, had reduced its offer to buy IFS from €55m to €33m.
AIB claims an internal inquiry revealed that their actions had led to significant loss and damage being caused to the state-owned bank.
The six executives are Pat Diamond from Elton Park, Sandycove in Dublin; Aidan Foley, formerly of Grawn, Kilmacthomas in Wexford; Gerry McEvoy formerly of Shandon Park, Phibsboro in Dublin; Derek O'Reilly of Fernleigh Drive Castleknock in Dublin; Andrew O'Shea formerly of Ashbrook House, Julianstown in Co Meath; and Joe Walsh formerly of Grosvenor Terrace, Monkstown in Co Dublin. The defendants reject the bank's claims, and deny any wrongdoing.
Earlier this month AIB secured an injunction requiring the defendants to preserve all documents and computer records.
The six have also given undertakings they will not solicit, canvass or try to contact AIB clients or those who were clients as of July 14 last.
Today, when the matter was mentioned before Mr Justice Peter Kelly, Michael McDowell SC for AIB said the parties would meet later this week in an attempt to the resolve the dispute.
The judge welcomed "anything that could bring an end" to the matter, given the significant time and costs involved should the case be fully contested. The judge had earlier asked the parties if the action would be "a battle to the death," or if mediation was a possibility.
Mr Justice Kelly added that if the talks did not produce any results, AIB's application for the injunctions against the six to remain in place pending the full hearing of the action would commence before the Commercial Court on Monday afternoon.
If that hearing goes ahead the court will also consider an application brought on behalf of one of the defendants, Mr Andrew O'Shea, aimed at dismissing AIB's action. It is brought on the grounds that AIB failed to disclose important facts to the court when it sought the interim injunction. The hearing is expected to last three days.
The judge also stated the full hearing of the action was not likely to take place until late December or early January.
