ULSTER BANK considered pumping more cash into a property empire run by two Co Derry brothers just months before stopping company cheques, a court has heard.
Richard Ennis, pictured right, was the relationship manager at the controversial bank for Drumsurn brothers Michael and John Taggart.
The Taggarts are suing Ulster Bank for gross negligence, claiming they were kept in the dark by bank officials over the state of their loans.
They turned down multi-million pound offers for developments and businesses which would have paid off Ulster Bank loans had they known of the bank’s concerns, they allege in the High Court case.
They are also defending a claim from the bank that they signed personal agreements to pay back Ulster Bank around £9M.
Mr Ennis was cross-examined by the Taggarts’ barrister Gerald Simpson QC.
The Taggarts, said Mr Simpson, had not take the first deal that came along in trying to finance other parts of their business including a valuable Manchester operation.
“That is entirely consistent with them not being told of the specific concerns that the bank had during this period, and how these were escalating,” Mr Simpson put it to Bangor man Ennis.
He also asked him why Ulster Bank would have considered a financial injection into the north of England operation if it believed the firm was so poorly run.
“Do you see that it’s wholly consistent with Mr Taggart’s view that nothing was troubling the bank, and that the bank was still prepared to fund a major enterprise in Manchester?” he asked.
Mr Ennis replied: “I don’t agree with it.”
Earlier Mr Ennis said he believed the company’s trading performance was “very, very strong” up until losses were allegedly disclosed in the accounts in June 2007.
Previous Ulster Bank witnesses have admitted that concerns about the Taggart group had not been passed to the Co Derry men.
Mr Ennis said he personally wasn’t told of concerns among other Ulster Bank officials until June 2007.
Asked by the bank’s lawyer Stephen Shaw QC about the Taggarts, Mr Ennis said he became aware of an alleged £25M to £30m ‘black hole’ in the company’s finances. This is disputed by the Taggarts.
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