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Monday, July 4, 2022

Investor blocks sale of properties in Galway and Limerick by receiver

A businessman has obtained a temporary High Court injunction that prevents a receiver from selling or interfering with six residential properties located in Galway and Limerick.

His order was secured after an application to the High Court by attorneys working against him, David O’Connor, a corporate recovery specialist and partner with BDO Ireland, for Martin Brennan.

The court heard that earlier this year, Mr O’Connor was appointed receiver by a financial fund, arising out of an alleged failure to repay a €2m loan given by EBS to the plaintiffs in 2006.

Mr. Brennan of Monivea Road, Ballybrit, Co Galway disputes the legality of the appointment of the receiver and has brought separate proceedings arising out of the provisions and handling of the security of the debt concerned.

The injunction prohibits Mr. O’Connor from selling, preparing for the sale, or interfering with six properties owned by Mr. Brennan.

The injunction on ex-parte basis was granted by Shri Justice Kerida Naidu during yesterday’s holiday meeting of the High Court.

The judge said that he was granting the injunction primarily because of his concern that the defendant receiver had not responded to correspondence sent from the plaintiff’s counsel.

The injunction will remain in force till the matter is returned before the high court next week.

Seeking an injunction, Venetia Taylor BL, directed by Solicitor Donnacha Enhold for Mr Brennan, said that the case arose from a €2m loan taken by Mr Brennan with EBS in 2006 to allow him to participate in the tax investment scheme. be allowed.

The lawyer said that under this scheme he bought five cottages at the Montenote Hotel in Cork, for which he would get rent. The lawyer said that protection was given to EBS on those properties.

Under that agreement, they claim, the promoters agreed to buy back the units after 10 years.

The lawyer said that the promoters failed to buy back the units, which Mr. Brennan is pursuing in a separate legal action.

The lawyer said that in 2011, EBS pressured him to provide additional security on the loan. The lawyer said that at the time his client was in the dark as to why EBS was harassing him to give him additional security at four properties owned by him in Galway City.

The lawyer said his client later learned that EBS had conducted an independent assessment of the title in relation to the cottage and concealed the fact that the security he had at the cottage was commercially worthless.

Mr. Brennan only has a 25-year lease on those properties.

The lawyer said the loan taken by Mr. Brennan was later acquired by Everyday Finance DAC, against whom he is pursuing legal proceedings.

The lawyer said that last May, Everyday appointed a receiver at five Galway properties and one in Limerick owned by Mr. Brennan.

The tenants of those properties have been asked to pay rent to the receiver.

Mr. Brennan now fears the properties may be sold.

World Nation News Desk
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