Farmer sues 'vulture fund' in proceedings aimed at allowing completion of sale deal
A farmer has brought High Court proceedings aimed at allowing him to sell 46 acres of land he owns so he can pay off his debts to a "vulture fund".
The action has been brought by Charlie Jennings against financial fund, Promontoria (Oyster) DAC, in respect of lands the farmer owns at Castletown, Kilpatrick, Navan, Co. Meath.
He claims he has on several occasions asked what he describes in a sworn statement to the court today as "a vulture fund" to provide him with a net redemption figure which allows him to redeem the loan so his mortgage over the lands would be vacated.
He claims the fund has failed to give him a net redemption figure at which Promontoria would agree to redeem the loan, which has approximately €257,000 outstanding on the loans.
As a result, he cannot sell his lands, despite having a deal with a purchaser in place since May and he cannot redeem the loans from the proceeds of the sale.
He said the situation has left him "feeling trapped" and at a "total loss of control over my affairs" which was causing him stress and anxiety.
Mr Jennings (aged 65) of Carrickamon, Ravensdale, Dundalk, Co. Louth bought the lands in two parts, in 2005 for €490,000 and in 2006 for €100,000 with loans financed by Ulster Bank.
The loans were purchased by Promontoria in 2016.
In order to reduce his indebtedness to the fund, he put the lands up for sale in February, as he is unable to pay the monthly mortgage payments.
The property, he says, is in positive equity and the agreed sale price is sufficient to clear the loans in full.
He said that following correspondence between the parties in August, Promontoria did send him a redemption figure.
He claims that figure also included sums due on a mortgage obtained by Mr Jenning's son over another property which is fully performing on which he has given a guarantee, and a joint mortgage between Mr Jennings and a business partner over another property.
Mr Jennings says Promontoria is asserting a right to seek payment on these mortgages by virtue of 'the all sums due' clauses in the mortgages obtained from Ulster Bank.
The sale agreement in respect of the 46 acres must be completed by February, but unless his solicitor is given the redemption figure and supporting documentation from Promontoria that agreement cannot be completed.
He is also concerned that a receiver may be appointed and would sell the lands at a reduced price.
A failure to complete the deal he fears would damage his reputation to do business in the farming community and could be exposed to an action for the breach of contract by the proposed purchaser.
Mr Jennings, represented by Martin Hayden SC, seeks various orders against the fund, including an order requiring Promontoria to specifically perform an agreement between the parties to provide the redemption figure.
He also seeks orders preventing the fund from interfering with Mr Jenning's legitimate interests and that it consents to the sale to of the property and provide all the necessary documentation to facilitate the completion of the sale.
He further seeks declarations that the fund cannot prevent the sale of the property, as well as an order for damages.
Permission was granted, on an ex parte basis, by Ms Justice Leonie Reynolds to serve short notice of the proceedings seeking the various orders and injunctions on Promontoria.
The matter will come back before the court next week.
