Ireland

Allied Irish Banks (AIB) has obtained €9.3 million judgment orders on consent at the Commercial Court against Galway businessmen Tom and John Nestor. The bank also secured orders allowing it to enforce the judgment across the EU, the Irish Times reported. The orders, granted to the bank’s counsel Kelly Smith by Mr Justice Brian Cregan, arises from various facilities advanced by the bank in 2012. Judgment was granted jointly and severally against Tom Nestor, Averard East, Taylor’s Hill, Galway and John Nestor, Gleann na Trá, Sandy Road, Galway.

Former Anglo Irish Bank chief executive David Drumm has made an emergency request to a US court seeking more time to file legal papers arguing why it should overturn a ruling blocking a write-off of his debts, the Irish Times reported. Mr Drumm asked for the deadline to submit his appeal brief, due this week, to the Massachusetts District Court to be put back to April 13th arguing that he should be given the time because he has hired a new lawyer. The former banker also wants permission from the court to increase the page limit for the brief to 40 pages, or 19,000 words.

Minister for Finance Michael Noonan has urged the European Commission to grant greater flexibility to Ireland in the application of budget rules to allow more “budgetary space” in October’s budget, the Irish Times reported. Minister Noonan raised the issue directly with German finance minister Wolfgang Schäuble and the European Commission during two days of meetings in Brussels, at which EU finance ministers backed a proposal to grant France two extra years to meet its EU deficit targets.

Public Expenditure Minister Brendan Howlin has become the latest senior Cabinet member to criticise mainstream banks over their conduct in personal insolvency cases. Mr Howlin warned banks that they must engage with customers in arrears instead of pushing towards bankruptcy, Independent.ie reported. "Not all banks are engaging as they should, and that's not good enough from the Government's perspective," he said. Mr Howlin's comments reflect a growing degree of frustration in government circles over the manner in which banks are engaging with the new insolvency regime.

Fresh from putting the squeeze on banks to behave themselves, regulators are scrutinising so-called shadow banks, alternative lenders such as investment funds doing big business out of countries like Ireland, the Irish Times reported. The third-biggest shadow banking market in the euro zone behind Luxembourg and the Netherlands, Ireland has amassed €2.9 trillion of assets, according to data from the European Central Bank, by way of business-friendly laws and tax exemptions.

The liquidation of IBRC has created a surplus which is likely to be enough to pay off all the unsecured creditors, an update to be published by the liquidators shortly will reveal. This is good news for the exchequer, as it means it will recoup the €1.1 billion paid to depositors on foot of State guarantees, the Irish Times reported. However it also now looks certain that cash will be left to pay off the €270 million owed to junior bondholders of the former Anglo Irish Bank, who would receive their money back after ordinary unsecured creditors are paid in full.

A number of current and former media executives will appear before the Oireachtas Banking Inquiry later this month as it continues its investigation into the collapse of the financial sector here in late 2008 and its subsequent rescue by the State, the Irish Times reported. This module of the inquiry will focus on the role of media during the property boom in the lead up to the banking crisis between 2002 and 2007 and any changes in approach after the crisis.

In the face of growing criticism of the current personal insolvency laws, the government has acknowledged that the current regime needs to be “energised”, TheJournal.ie reported. The coalition will oppose Fianna Fáil’s Family Home Mortgage Settlement Arrangement Bill in the Dáil tonight. The draft law essentially removes the controversial bank veto on proposals to restructure a family home mortgage through the personal insolvency process.

A company that obtained a €2.8 million judgment against Joseph Sheehan and John Flynn, two of the main shareholders in Dublin’s Blackrock Clinic, has secured interim charging orders over Mr Sheehan’s shares in a firm that owns a half share of the private Galway Clinic. Mr Justice Brian McGovern granted the interim orders on the ex parte application (one side only represented) by Bernard Dunleavy SC, for Talos Capital Ltd, at the Commercial Court. The matter will return before the court next week when Mr Sheehan will have an opportunity to challenge the orders.

Two brothers have lost their bid to restrain receivers selling their assets after Allied Irish Banks obtained a €17.6 million judgment against them, the Irish Times reported. Mr Justice Brian McGovern rejected arguments by Paul and Gerard Dormer the €17.6 million judgment granted against them in March 2014 should be vacated due to AIB’s alleged failure to properly complete a January 2014 settlement agreement under which they had agreed to judgment provided specific conditions were met by AIB.