A Co Kildare businessman, who lost his €6m Griffeen Shopping Centre in Lucan, Co Dublin, in a forced sale by AIB Bank, has been told by a judge he must now pay his financial adviser €48,000 in professional fees and costs.
Judge John O’Connor heard in the Circuit Civil Court that John McLoughlin, Kings Lane, Kilteel, Naas, had employed CKS Finance Limited in March 2016 to raise a €6m rescue fund to save his ailing Griffeen Properties Ltd which owned the shopping centre.
McLoughlin, a qualified accountant and former finance director, told barrister Ray Delahunt for CKS that despite the efforts of CKS the AIB Bank had appointed a Receiver over his company and the shopping centre had been sold by public tender to another company Roblex Ltd in which he had no legal interest.
When Mr Delahunt, who appeared with Bohan Solicitors, cross-examined McLoughlin about a possible personal benefit in Roblex he said his wife, Helen McLoughlin, was a 50% shareholder in that company and his only benefit was a €20,000 annual fee he charged her for looking after her interest.
CKS director Conor Sheehan told Judge O’Connor he had been retained by “John” to negotiate on his behalf with regard to his financial obligations to AIB Bank and he had done so throughout 2016 and 2017 into early 2018 at the end of which he had in place a €6m funding.
He said he had carried out negotiations with the Receiver but the €6m funding arrangement had never been taken up by Mr McLoughlin who, he said, had agreed to pay CKS €45,000 for professional fees for their fundraising.
Sheehan told Mr Eoin Coffey, counsel for McLoughlin, that the arrangement had not been committed to writing and his company had never raised a formal invoice for its fees.
In opening the €45,000 claim for professional fees, Mr Delahunt had told the court that after CKS of Feltrim Road, Swords, had secured the €6m funding Mr McLoughlin had ceased contact with them and unbeknownst to CKS had proceeded to conclude the same financial package which had allowed Roblex buy the shopping centre from the Receiver.
Mr McLoughlin, in his defence, claimed no satisfactory deal had been signed up to or agreed with AIB Bank and, on the contrary, the shopping centre asset owned by Griffeen Properties Ltd had been sold to a third party (Roblex) in which he held no legal interest.
He said AIB was still pursuing him through his companies for a total of €9.1 million.
Tadhg Gillane, who described himself as an equity partner in the transaction to purchase Griffeen said Bank of Ireland had funded the purchase.
He and Mr McLoughlin had wanted to keep CKS “on the pitch” as they were negotiating with the Receiver.
He had submitted the successful tender on behalf of Roblex and had instructed John not to fall out with CKS as “it would not seem well.”
Judg O’Connor, awarding CKS €36,000 and agreed costs of €12,000, said it was a terrible pity that the parties had not availed of mediation.
He said Mr McLoughlin had continued to engage with CKs right up to January 2018.
Mr McLoughlin had continued to engage with CKS while being aware they were looking for professional fees of €45,000.
