Killally in hospital as bank sues Offaly quartet

Former Fianna Fáil councillor Ger Killally was admitted to hospital last Friday, and was unable to appear to face a law suit brought by National Irish Bank on Monday last. Mr Killally from Shean in Edenderry, is among four people being sued by NIB for €4.6 million over alleged default of repayments on development loans. The Commercial Court heard that Mr Killally was admitted to hospital suddenly last Friday evening, and his lawyers required time to take instructions. Mr Killally"s solicitor said his client had been admitted to hospital very suddenly and his lawyers had no information about his current medical state and required time to take instructions. Mr Justice Peter Kelly said that any application arising from Mr Killally"s medical condition should be made next week. NIB are also taking proceedings against former Offaly football manager Richie Connor, Walsh Island, Tullamore, a former business partner of Mr Killally. The NIB charges are also against Frank Lawlor, Clonmullen Lodge, Edenderry, and Declan Guing, Carrick Road, Edenderry, who are currently suing Mr Killally and Mr Connor over alleged failure to disclose the secret profits made from the land deals in which all four were allegedly involved as partners. NIB claims it advanced a €7 million loan to Plaza Developments Ltd (PDL) from December 2006. It claims the four defendants guaranteed the borrowings of PDL up to €8m. A liquidator was appointed to PDL in September 2008. NIB claims the loan facilities were for the purpose, amongst other things, of building and developing the 80-bedroom hotel and leisure centre at Downshire. The bank also claims a total of €4.63 million was due on December 18 last on foot of the loan agreements, and on foot of the guarantees given by the defendants. On Monday, counsel for Mr Guing and Mr Lawlor said his clients would be arguing that the guarantees over the loan facilities were voidable. Mr Justice Peter Kelly granted the application by counsel for NIB to enter the case into the Commercial Court and adjourned the bank"s application for summary judgment to May 13.