• Home
  • NAMA property for sale
  • About
  • The Developers
  • The Tranches

NAMA Wine Lake

Click the green link above for latest news and over 2,600 related articles. NAMA – National Asset Management Agency – part of Ireland's response to its banking crisis and property bubble

Feeds:
Posts
Comments
« Irish bank-controlled hotels; follow-up
Allsop Space auction today now concluded – results and analysis »

Northern Ireland court case sheds light on Irish banks lending practices during the boom

July 6, 2012 by namawinelake

“About this time Mr McDonald [Bank of Scotland (Ireland)] told Mr Walsh that he was coming under considerable pressure to lend more money due to increased lending targets imposed by the bank and the bank was keen to expand the loan book to key customers and Mr Walsh was identified as a key customer or a preferred customer.  Mr McDonald advised that the bank had received particulars of Direct Line House in Leeds and it was proposed that Mr Walsh should acquire this property.” Extract from Northern Ireland High Court judgment Chris Walsh v Bank of Scotland (Ireland).

Will this nation ever forgive developers for having racked up colossal lending, which, when the State decided to guarantee the banks and use NAMA to acquire the lending, fell on our shoulders in circumstances where the loans will never be fully repaid because of the collapse in property prices? Maybe we will, but in a judgment delivered in Belfast’s High Court in April this year which has just now been published, we get an insight into lending practices at banks which seemingly show that there are two sides to the lender-borrower relationship.

We have heard before from developers who claimed that banks were foisting money on them. Remember Simon Kelly and his account of banks during the boom in his book “Breakfast with Anglo”? Thanks to this Bank of Scotland (Ireland) case, we get for the first time that I have seen, in a court judgment, a formal picture of life during the boom at Irish banks.

The case involves Northern Ireland developer, Chris Walsh who has a portfolio of commercial property in Northern Ireland and Britain. He has loans from Bank of Scotland (Ireland) in Belfast and this present court case centres on the terms of this lending, there being a variance between the accounts of the developer and the bank. Chris was seeking an injunction to stop BoS(I) from taking enforcement action against him and his companies, pending the disposal of the court case where his dispute with the bank is to be fully dealt with. Belfast’s High Court granted Chris his requested injunction and the case is set to dealt with next year.

So for now, we hear from Chris’s side that BoS(I) was verbally offering terms which were less harsh than those specified in writing in loan agreements, with implications that BoS(I) would support the borrower if, after the specified loan term, the property could not be sold at a satisfactory price. We also hear allegations that bankers were given lending targets, and in at least one case, brought a project to the borrower.

BoS(I) and their asset management company, Certus, have disputed much of what Chris says, but the judge is satisfied there is an arguable case for when the hearing finally takes place next year.  There appears to be internal documentation within BoS(I) which supports the developer’s claims, as well corroboration by the developer’s solicitor. It is set to be an interesting case, which might have ramifications for other developers who feel aggrieved at the sudden change in banks’ attitudes in 2007/8.

The BBC has a report on the case here.

Advertisement

Share this:

  • Twitter
  • Facebook
  • Reddit

Like this:

Like Loading...

Related

Posted in Banks, Developers, Northern Ireland | 6 Comments

6 Responses

  1. on July 6, 2012 at 1:35 pm JP

    BoSI/Certus/ Lloyds have certainly been taking no prisoners.

    They recently took a good shopping centre off one of the north’s most respected businessmen.

    http://www.bbc.co.uk/news/uk-northern-ireland-18655621

    They also put an ignomious end to the career of Harry Sproule who has been in the game forever

    http://www.bbc.co.uk/news/uk-northern-ireland-16838773

    It will certainly be interesting if Mr McDonald, who no longer works for the bank, is subpoenaed


    • on September 28, 2012 at 9:54 am Jame

      Interesting case about Chrish Walsh. Watch out for the High Court Case against BOS plc and Diorama Limited. It may be that the BOS plc appointments of Receivers to Diorama may be deemed invalid by The Commercial Court due to their failure to comply with the Cross Border Insolvency rules. Interesting why all BOS plc appointments to Hotels have ceased since early June. . Case is listed 7th to 9th November 2012.


  2. on July 6, 2012 at 3:38 pm Colm

    BOSI staff are being bonus incentivized to the end of the year to clear all the loans they can, asap. Will settle or do whatever it takes to reduce loan portfolio.


    • on July 6, 2012 at 3:44 pm JP

      There was a line in the SBP recently that they were freeing people from PGs so long as they agreed to come quietly, as it were.


  3. on January 28, 2013 at 7:03 pm JP

    There’s an update – it appears Mr McDonald could be giving evidence against his erstwhile employer.

    http://www.bbc.co.uk/news/uk-northern-ireland-21233127


  4. on January 29, 2013 at 9:04 am derek

    Well Done Chris Walsh, don’t give up you have them in a corner !



Comments are closed.

  • Recent Posts

    • Test – 12 November 2018
    • Farewell from NWL
    • Happy 70th Birthday, Michael
    • Of the Week…
    • Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of European Commission commitments
    • Gayle Killilea Dunne asks to be added as notice party in Sean Dunne’s bankruptcy
    • NAMA sues Maria Byrne and Graham Byrne in Dublin’s High Court
    • Johnny Ronan finally wins a court case
  • Recent Comments

    Wisemama on Eddie Hobbs’s US “partner” fir…
    Dorothy Jones on Of the Week…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    John Foody on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Frank Street on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    John Gallaher on Of the Week…
    John Gallaher on Of the Week…
    who_shot_the_tiger on Eddie Hobbs’s US “partner” fir…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Brian Flanagan on Of the Week…
    Robert Browne on Gayle Killilea Dunne asks to b…
  • Twitter Updates

    • Funniest case in Irish legal history? 1. ex-Cllr Fred Forsey convicted of RECEIVING a corrupt payment 2. developer… twitter.com/i/web/status/1… 4 years ago
    • Really looking forward to this at 9pm tonight, esp the first Garda on the scene. Well worth reading this background… twitter.com/i/web/status/1… 4 years ago
    • Tea time on the day the president of the ECB tells us we [in Ireland] are paying more interest on our loans than th… twitter.com/i/web/status/1… 4 years ago
    • “I am grateful for you to refer to Mr Sugarman...on the specific question of Unicredit, responsibility at ECB lies… twitter.com/i/web/status/1… 4 years ago
    • @JMcGuinnessTD now confronts ECB about "the honest whistleblower" @WhistleIRL and his disclosures of liquidity issu… twitter.com/i/web/status/1… 4 years ago
    • Details, including court documents of class action in New York against Ryanair and CEO Michael O'Leary.… twitter.com/i/web/status/1… 4 years ago
    • Draghi tells @paulmurphy_TD the ECB doesn't remove govts, the people do, that's democracy. Bet the people will be m… twitter.com/i/web/status/1… 4 years ago
    • Wow! Draghi says there is no net interest cost for the Anglo bonds whilst they're held by the Irish central bank. T… twitter.com/i/web/status/1… 4 years ago
    Follow @namawinelake
  • Click on date for that day’s posts

    July 2012
    M T W T F S S
     1
    2345678
    9101112131415
    16171819202122
    23242526272829
    3031  
    « Jun   Aug »
  • Blog Stats

    • 5,113,733 hits

Create a free website or blog at WordPress.com.

WPThemes.


Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • NAMA Wine Lake
    • Join 1,326 other followers
    • Already have a WordPress.com account? Log in now.
    • NAMA Wine Lake
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Copy shortlink
    • Report this content
    • View post in Reader
    • Manage subscriptions
    • Collapse this bar
%d bloggers like this: