Commercial court to hear action against Belfast based developer, Patrick Kearney

The Maple 10 were a group of investors who bought shares in Anglo Irish Bank in 2008 under a deal to slash businessman Sean Quinn’s stake in the lender.

The legal row centres on an agreement the businessman Patrick Kearney entered into three years ago over bonds in the Anglo Irish Bank Corporation.

Stapleford Finance Designated Activity Company of Victoria Buildings, Haddington Road, Dublin has brought the action against the businessman Patrick Kearney of Bedford House, Bedford Street, Belfast.

It is claimed that by deed of settlement on November 14, 2014 Mr Kearney acknowledged he was indebted to Stapleford in the amount of €19.2m arising from certain loan facilities entered in to and or guaranteed by him with Anglo Irish Bank Corporation.

These loans had been assigned by Anglo to Stapleford.

Stapleford agreed to accept €2.3m in satisfaction of Mr Kearney’s outstanding liability and on payment of that sum, Stapleford would release a first legal charge which it held over the interest of Mr Kearney in certain Anglo bonds.

Stapleford now alleges that in breach of the express terms and conditions of the deed of settlement, Mr Kearney allegedly did not disclose to Stapleford that at the time of the execution of the settlement, he was allegedly in the process of executing a transaction to dispose of the bonds for €6m.

Stapleford says it first wrote to Mr Kearney in July of this year informing him of the alleged breach and asking for a written proposal in relation-to payment of the alleged outstanding liability of just over €16m.

Mr Kearney it said did not respond to the letter and it has alleged the businessman has failed or neglected to pay the €16m or any sum to Stapleford.

Mr Justice Brian McGovern today admitted the case to the Commercial Court list.

Stapleford director Donal O’Sullivan in an affidavit said the deed of settlement was entered in to on November 14, 2014 following negotiations that were carried out over a number of months .

He said the deed of settlement provided that security held by Stapleford over certain subordinated Anglo bonds was to be released following the payment of the €2.3m.

Security on the bonds was released on payment but Mr O’Sullivan said that Stapleford subsequently learned from national media reports, the bonds had sold for €6m.

Mr O’Sullivan said Mr Kearney had failed or neglected to pay €16.8m or any sum to Stapleford in response to the demand for payment made on September 8, 2017.

Mr O’Sullivan said having regard to the seriousness of the matter, Stapleford is at a loss as to why Mr Kearney would fail to substantively respond to any of the letters and emails sent since last July.

Stapleford, he said had exercised its lawful entitlement to terminate the deed of settlement and enforce its rights to seek judgment against Mr Kearney for a total of 16.8m.

The case will come back before the court next February.