Gary Barr
AN ULSTER Bank boss has admitted a serious error in failing to tell two Derry businessman about a change to their loan arrangements.
The shock admission came in civil action being taken against the bank by Drumsurn men Michael and John Taggart.
They are suing the bank claiming that they turned down multi-million pound offers for property in 2006 and 2007 believing their business was in good shape.
But unknown to them, they claim, Ulster Bank had expressed internal concerns and never relayed it to them.
Had they known, they allege, they would have taken the offers and cleared their debts to Ulster Bank. The bank is counter-suing for around £9M it claims it is owed in personal guarantees over properties in Belfast and Dublin.
The Taggart empire collapsed in 2008 with hundreds of jobs losses.
At the High Court Gary Barr accepted the brothers were not personally informed in late 2006 about an alteration to the loan facility.
Mr Barr was part of the bank’s relationship management team dealing directly with the Taggart account prior to the firm’s collapse.
Under cross-examination by Gerald Simpson QC, for the brothers, he was questioned about lending arrangements linked to the Kinsealy scheme.
The court heard how, by November 2006, there had been a change to the method of repayment.
Asked if there are any documents to show the brothers were informed at the time, Mr Barr said the only letter he had seen was from July 2007.
Mr Simpson put it to him: “May the court take it you never had it explained to you that if you’re going to change the methodology of payment with respect to a borrowing facility you should tell the guarantors?”
The banker replied: “I can’t recall training of that nature before this point.”
During exchanges he was pressed on his assessment of the scale of the alleged oversight.
Mr Barr insisted that the guarantors were “fully involved” with the company.
But according to Mr Simpson it was fundamental that the Taggarts should have been warned of the changes, given they faced a 4.3 million euro personal obligation.
“Do you accept it’s a very serious omission?” he asked.
Mr Barr answered: “I accept it’s a serious omission.”
“So the only word we are arguing about is ‘very’,” the barrister responded.
Mr Barr added that he believed no further discussions took place on that point about the repayment method during the rest of his time looking after the Taggart account.
The case has already heard how Mr Barr had tried to befriend Mr Taggart’s wife on Facebook.
Mr Simpson has accused Mr Barr of being obsessed with the Taggarts. He denied the claim.
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