Banks sues over Chicago Spire loan

Bank of America has applied to a Chicago court for a summary judgment against Irish developer Garret Kelleher and his Shelbourne Development company, this for the repayment of over $5 million in loans.

The latest salvo in a nearly two-year legal battle between the parties comes after Bank of America lost patience with what it claimed was a 'transparent attempt' by Kelleher and his company 'to delay repaying their financial obligations,' the Irish Independent reported.

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The bank alleges that the defendants have prolonged the litigation by raising a series of "meritless defenses and counterclaims."

The money had been loaned to Shelbourne and Kelleher to advance construction of the Chicago Spire, a $2 billion, 150-storey residential skyscraper that at 2,000 feet high was to be one of the tallest in the world.

Last year, Kelleher lost control of the Spire site, essentially a big hole in the ground, after Anglo Irish Bank secured the appointment of a receiver. Shelbourne owes Anglo about €77 million.

According to the Independent report, Bank of America has asked the Chicago judge to order Shelbourne Development and Kelleher to hand over the money it is owed.

However, the report added that decision was unlikely to be made for a number of weeks and it was "almost certain" that Banks of America's motion would be opposed by lawyers for Kelleher and Shelbourne.