AIB’S UNUSUAL MANNER

TOM GILMARTIN’S former business partner, Richard Forman (above), told Tribunal counsel Patrick Quinn SC of “undue pressure” brought to bear by AIB against Gilmartin, the original planner of the Liffey Valley Centre.

Gilmartin, who owed the bank 4.5 million pounds, “was placed under undue pressure to transfer his equity.”

In an attempt to maintain his control over Barkhill and the prime real estate it had acquired, Gilmartin and Forman tried to market the potential of Quarryvale to UK retail suppliers.

On one occasion in September 1990, Gilmartin took two such investors to dinner at Finnstown House after visiting the site. During the meal Mr. Gilmartin received a call from Mary Basquille, an official with AIB. The bank wanted their 4.5 million stake paid in full or they would take part of his company, and its equity portfolio. Gilmartin assured her that he was entertaining two investors and that AIB would get its money soon. He then returned to his table with Forman and the two possible investors.

Before the dinner concluded Liam Lawlor, a TD for West Dublin (deceased), appeared in the restaraunt and approached the table.

Mr. Lawlor introduced himself to the two investors as the local representative for the area. At one point joking that the lands were in “bandit country” populated by “mad-dogs”.

Mr Forman said: “We tried to make light of his comments, but Mr Lawlor’s intervention had sowed the seeds of doubt in our investors.”

The clients decided not to proceed.

Mr. Forman remembered AIB officials as being aggressive and abusive with Gilmartin during board meetings of Barkhill Ltd. On one occasion rival developer Owen O’Callaghan attended such a meeting in AIB, Ballsbridge.

Mr. Foreman found O’Callaghan’s attendance at the Barkhill board meeting unusual, since he was not a member of the company, nor had he ever met the man before.

AIB demanded 60% of Gilmartin’s company, introducing O’Callaghan as the new partner, he would control 40%. AIB would maintain a 20% balancing share.

This acquisition of their customer’s company involved extending the terms of finance on Gilmartin’s debt to the bank.

From this point on Gilmartin was excluded from board meetings and executive responsibility in his company whose equity portfolio would eventually increase from a value of 4.5 million to upwards of 19 million pounds.