by Andrew Carey
A BANK application to repossess a former Limerick hotelier’s family home has been adjourned to allow work restart on a West African island resort development that would allow him repay his €1.6 million debt.
Bank of Ireland Mortgages were seeking a repossession order at Limerick Circuit Court last week over unpaid borrowings of €1.7million taken out in 2004 by businessman Brendan Dunne and his wife Hilda.
The borrowings were taken out against the security of the family home “Shamrockville” on Limerick’s North Circular Road. The five-bedroom property on a 1.3 acre site, was valued at €4.5 million but this has since been reduced to around €1.5 million.
Counsel for Bank of Ireland Derek Sheahan told the court that the bank was given a letter stating that recouping an investment in a development on Cape Verde was “mooted as a cure-all” for Mr Dunne’s financial issues.
He said the Bank of Ireland was seeking possession of the house as €1.6 million was still owed and a previous settlement agreement had broken down between 2012 and 2013. The application had been previously adjourned pending the completion of separate legal proceedings before the High Court in Ireland and a court in Cape Verde.
Construction at the Paradise Beach development in Cape Verde was halted on foot of court injunctions and counsel for the Dunne family, Pat Barriscale said that resolution in these matters had been reached and the injunction holding up the development would be lifted on February 24.
Mr Sheahan said that the Cape Verde development was not the bank’s concern but they were “in a holding pattern until the other case is finalised”.
The court was told that the Dunne family could raise €3.5 million from their investment if the development was fully completed.
“That’s the only possibility my clients have to deal with the arrears. If a repossession order is granted, then they will simply have nowhere to live,” Mr Barriscale said.
He told the court that before the economic crash, 68-year-old Brendan Dunne had six hotels and 20 properties that were fully serviced and paid for but in 2006 he became ill with a life threatening illness.
“Mr Dunne was diagnosed with Guillain-Barré syndrome in 2006 and spent 16 months in hospital that has left him with very limited mobility and is a wheelchair user. He is anxious to see out the Cape Verde development and is both hopeful and opportunistic”.
Mr Barriscale said it was hoped to get the Cape Verde development back up and running as it was “ready to get going”.
He added that up to seven properties were recently sold on the North Circular Road and prices were seeing an upward trend.
Judge O’Donnell said while he appreciated the position of the bank that the Cape Verde development was not their problem, he was willing to see if there could be some resolution. Granting an adjournment to June 3, he said the court would then be able to establish if construction had restarted as he was “trying to meet the best of both sides”.
