Judgment sought on default loan that's accruing interest of €4,201 a day

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By last month the figure stood at some €4.5 million at an annual percentage interest rate of 27.2 per cent
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Michael McAleer

A finance company is seeking summary judgment for just over €4.5 million against a businessman and a company over the alleged default on a refinancing loan it provided in 2018.

Santiago Capital DAC, Lower Mount Street, Dublin is suing Mavenbrook Ltd and Michael Maye of Orwell Road, Rathgar, Dublin, over a loan note of €2.7 million which has grown, with interest, to €4.5 million.

The loan was to Mavenbrook to refinance existing facilities it had with Davycrest Nominees. It initially consisted of some €2.4m with Mr Maye acting as guarantor. Santiago was granted first legal charge over two properties in Headfort Road, Galway, and in Claremorris, Co Mayo.

The facility was made in November 2018 and it was twice subsequently amended bringing the figure to some €2.7 million.

Repayment

Santiago says the company defaulted on its obligations and in May of this year, it wrote to Mr Maye demanding repayment of just over €4m, which included interest and an arrangement fee.

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By last month the figure stood at some €4.5 million at an annual percentage interest rate of 27.2 per cent.

Interest, which stood at €1.78 million continues to accrue at €4,201 a day, Santiago says.

It brought High Court proceedings against Mavenbrook and Mr Maye seeking summary judgment for €4.5 million.

On Monday, Mr Justice David Barniville admitted the case to the fast track Commercial Court on the application of Santiago. There was no objection from the defendants and an agreed directions on how the case should proceed were approved by the judge.

 

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