Dublin’s High Court grants temporary freezing order over sale of Project Achill’s Pool E

Dublin’s High Court has today granted an ex parte interim injunction preventing the sale of Ulster Bank’s Pool E loan tranche in Project Achill, after the borrower requested a hearing to establish whether the interest rate swap mis-selling claim must be settled first.

Vierai Ltd and European Property Fund plc, two wholly-owned companies of Michael and Rick Larkin, secured the freezing order the sale of the €87m loan tranche this lunchtime.  Both parties will now make their case to a High Court judge in around a week’s time.

A judgement is expected on the day of the hearing.  The legal action was initiated in mid June, with the two companies seeking €40m in damages.  The interest rate swaps are understood to have now expired.

It is understood that Ulster Bank, the RBS subsidiary, was not notified of  that a freezing order was being sought prior it being secured earlier today.

CoStar News understands that Goldman Sachs’ special situations fund had offered the highest bid in the second round with an offer in the low €70m range for the loan tranche, which is complicated by personal guarantees. 

Two loan repayment installments of €8m and €11m are planned by Vierai Ltd and European Property Fund plc to be made this Friday an the Friday 17 October, respectively, CoStar News understands.

The underlying collateral in Pool E includes 208 homes in Tyrellstown, Co Dublin and a commercial property portfolio over 153,738 sq ft.  The latest valuation in June was €57.3m while the gross annual income was €2.76m.

The final settlement of Project Achill’s remaining loan tranche sales are still, in part, under deliberation as the bank seeks the overall best possible recoveries from the blend of second round binding offers received.

All parties declined to comment.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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