Republic of Ireland Law
Republic of Ireland Law Questions Answered by Experts
To answer the questions in the order you have asked them:-
1. There is nothing to prevent the bank suing you for what you owe them through the courts. It makes no difference that you might have paid over 20k during the course of the year. Once you owe them the money and a demand has been made, then they can sue you for all that you owe.
2. There is no principle of law or fact which requires the bank to have regard to the "Red Book Valuation" when assessing any offer you might make in relation to the premises. So, you are being over generous to yourselves believing that the "Red book valuation" should govern it.
3. The powers of the Receiver in this instance are governed by the terms of the debenture under which the Receiver was appointed. This essentially is laid down in the mortgage agreement you will have signed with the bank when the loan was taken out. Whilst a receiver will have additional powers governed by law, such as under the Chancery Receivers (Ireland) Act, 1856, these are only in addition to the powers given by the contractual debenture under which they were appointed. In that contractual debenture, there will be nothing which limits the receiver to writing things down. Conducting offers by telephone will merely fall within the wide ambit of powers under which the Receiver is appointed, as these always are over generous to the Receiver as to what he might do.
4. As a final word of advice, you need to realise that the appointment of a Receiver heralds the blood and guts end of the recovery process. Essentially, you need to realise that the bank can pursue you for all the monies which are owing, even if the sale of the property realises less than this sum. So, there is no incentive for the bank to settle for less. This should have been pointed out to you by your solicitor when it came to dealing with the bank. Whilst the business might only be worth 100k, if the loan amount outstanding is 350k, then the bank will seek to avoid a loss for themselves if they can at all. It would have been better to adopt the approach to paying the bank rather than the other creditors as you don't have a business if the bank pulls the plug. The banks in Ireland are not a charity, so if they believe that there might be a prospect of recovering their money, they won't settle for less.