Fund seeks judgment for €61m against property company Balmoral and 50 associated companies

A fund is seeking judgment for more than €61 million against Balmoral property holding company and 50 associated companies over loans originally made in 2007.

Everyday Finance DAC is seeking judgment for €33.4 million and £26 million (€28.3m) against Balmoral International Land Ltd, of Stokes Place, Dublin, and 50 subsidiaries which it says each acted as guarantors on the loans.

The loans, totalling some €300 million, were originally made by AIB before being restructured in 2015. In December 2019, two of the four loan facilities had been fully repaid but around €60 million remained outstanding.

Last January the outstanding loans, totalling €61.4 million, were sold to Everyday, a loan servicing and credit management fund with registered offices in Ballybrit, Co Galway.

In Commercial Court proceedings, Everyday says in a statement of claim that there was a dispute between the parties as to whether the outstanding amounts were repayable on demand. Everyday says they are. It says while the terms of the two loan facilities did not give the lender an entitlement to demand repayment, the proper construction of the facility agreement must be interpreted as meaning repayment on demand.

Everyday also pleads a number of alternatives including that the lack of that condition in the loan facility was a mistake; would, if interpreted any other way, lack commercial or practical coherence or there is an implied obligation to repay on demand.

Proceedings

On December 2nd last, Everyday demanded repayment. It says that was not forthcoming and proceedings followed.

As well as judgment for €61 million on a joint and several basis against the defendants, Everyday seeks declarations the facility agreement of 2015 should be interpreted as meaning the outstanding loans shall be repayable on demand.

It also seeks a declaration that certain clauses in the loan agreement relating to terms of repayment should be rectified on grounds of common or mutual mistake or alternatively on grounds of unilateral mistake.

The case was admitted to the fast track commercial list on Monday by Mr Justice David Barniville, who approved directions for its progress to trial and adjourned it to May 2021.