Businessmen sued by fund for €2.1m over alleged loan default
Two businessmen are being sued by a fund for €2.1m over alleged default on a loan they received to buy a one-acre site at Mill Lane, Shankill, Co Dublin.
Cathal Mallon, Sandymount Avenue, and Michael Shanahan, Victoria Road, Killiney, both Co Dublin, are being sued by Promontoria (Arrow) Ltd.
The case was admitted to the Commercial Court by Mr Justice Brian McGovern.
Mr Mallon, who represented himself, opposed entry to the commercial list claiming that if the site was sold, the price it would fetch would mean it would be below the €1m threshold for admission of cases to the Commercial Court. Mr Shanahan was not opposing entry, the court heard.
Promontoria says the defendants were provided with a loan of €1.8m by the Educational Building Society in 2008 and 2009 to go towards the purchase of the Shankill site for €2.5m. The loan was later taken over by Nama who transferred it to Promontoria in 2015.
In July last year, Promontoria sought repayment of loan which now stands at €2.1m
When it was not repaid, it appointed a receiver over the property who wants to sell it to help pay off the debt.
Mr Justice McGovern, noting Mr Mallon was saying he has a defence to the summary judgment application, adjourned the matter to March.
