In Irish Times 11th March 2010, there is the report of a case taken by ACC Bank against a developer, who has been unable to pay his loans.
Mr Justice Peter Kelly said his experience of managing the Commercial Court was that trying to sell property now was a “very difficult exercise” with no indication of any improvement in the market in at least the next two years. Every day he was seeing people who were “very exposed” with “unsaleable properties” and no means of servicing loan.
In those circumstances, there was no point in deferring the judgement order in the hope things might improve.
He made the comments when granting judgement for €937,443 to ACC Bank against a property developer in Galway, arising from his failure to repay loans advanced from 2003 onwards.
Earlier, the developer, representing himself, accepted he owed the money but argued that ACC had refused to make accommodations as to how the loans would be repaid. He had tried to sell some properties for about two years to meet loan repayments but had been unsuccessful and he also had difficulties getting tenants.
Sometimes it is difficult to let properties because they are in poor repair and the landlord, because he is strapped for cash, is unable to upgrade his properties. He then can’t meet his loan repayments. In SCK Group, we are willing to take on the cost of the refurbishment of a property, thereby making it more ‘let-able’. We will re-coup the cost of the refurbishment from the rental income over a period of time.
Our priority is to achieve a high occupancy rate on all our properties so that our landlords do not run into difficulty repaying their loans.