A RECEIVER was appointed to the Mount Locus Business Campus, owners of the 33 acre site, outside Daingean, at the centre of a €10 million legal dispute between former Fianna Fail councillor Ger Killally and a group of investors.
EBS has appointed Jim Luby of accountancy firm McStay Luby as a receiver to the Mount Locus Business Campus. The building society is owed about €6.4 million by a consortium of investors who bought the property in 2007 for €10.6 million.
The site is a former Bord na Mona production plant and has planning permission for 450,000 sq feet of industrial development. Luby will put the property on the market, once problems about is ownership have been resolved.
The Mount Lucas company is the focus of a legal dispute between Killally and the investment group, which was heard in the High Court in January this year.
The investors allege that Killally was involved in a scam by selling them the Daingean property for €10.6 million on the day that he acquired the land for €4.7 million, unknown to them. The seller of the site was Killally’s father in law. The investors allege that Killally made a secret profit from the day and they are suing Killally, a firm of solicitors and financial advisers.
The investors funded the purchase of the land and with personal funds and the €6.4 million loan from EBS. Some of the investors gave personal guarantees over the EBS loan.
The High Court heard that valuation evidence indicated that the real value of the land was €3.25 million, less then one third of what the investors paid for it.
Ger Killally was declared bankrupt after the case was initiated. The High Court was expected to deliver its judgement in the case shortly.