HURLING legend DJ Carey and his partner, Sarah Newman have been ordered by the Commercal Court to repay almost €9.5m each to Allied Irish Banks.
Lawyers for Mr Carey and for Sarah Newman, a former dragon on the RTÉ show, Dragon’s Den, told the court they were not objecting to the judgment orders being sought by the bank against them. Neither party was present in court on Monday.
The court heard that DJ Carey took out a 20-year mortgage in April 2007 secured on the property at the K-Club and at Mount Juliet. The mortgage loan was for just over €7.85m. He also gave a guarantee of €1.5m in respect of Sarah Newman’s liabilities. The loan was secured on properties at 908 Laycastle, The K Club, Straffan, Co Kildare and 5 The Inch Mount Juliet, Co Kilkenny. The court heard the transactions were carried out as part of a wider restructuring of Mr Carey’s business. The mortgage fell into arrears and the loan was called in in March this year.
Judgement for €9.4m was granted against Ms Newman arising from her guarantee, limited to €7.85m, of the liabilities of Mr Carey and under a €1.5m mortgage loan secured on 821 Ladycastle, The K Club.
The bank said that the mortgage facility given to Mr Carey was for a term of 20 years and was subject to terms and conditions. It wrote to Mr Carey on January 19, January 31 and February 7 about arrears of the mortgage account. On Feburary 7, it demanded repayment of arrears within 21 days failing which it indicated it would be entitled to terminate the facility.
On March 9, the bank wrote to Mr Carey about the outstanding sums due and said, as no steps had been taken to remedy the breach, it was terminating the facility and demanding immediate loan repayments.
The bank again wrote to Mr Carey on March 28 advising him Ms Newman was in breach of her loan obligations. It demanded immediate repayment of €1.5m under Mr Carey’s May 2007 guarantee of Ms Newman’s liabilities.
The bank wrote to Ms Newman on February 10 calling for repayment of arrears of €7,349 on the mortgage account within 21 days, failing which it indicated it would be entitled to terminate the facility.
On March 7, the bank wrote to Ms Newman stating Mr Carey was in breach of his loan obligations and demanding immediate repayment of €7.85, plus daily interest, under the guarantee provided by her.
In DJ Carey’s case, Mr Justice Peter Kelly allowed a stay on the order of four weeks to allow Mr Carey an opportunity to see if he can come with proposals in relation to repaying the debt. However in Ms Newman’s case he refused to allow a stay, as the bank said it may be in a position to recover some of the money by moving on Ms Newman’s property interests abroad.