• Home
  • NAMA property for sale
  • About
  • The Developers
  • The Tranches

NAMA Wine Lake

Click the green link above for latest news and over 2,600 related articles. NAMA – National Asset Management Agency – part of Ireland's response to its banking crisis and property bubble

Feeds:
Posts
Comments
« NAMA announces first demolition of apartment block in Ireland
Quinn family held in contempt »

The developer who took legal action to get into NAMA

June 26, 2012 by namawinelake

There’s always one, and in this case, his name is Johnny Moran.

This is not news and the basic facts of the case were reported in the Irish Times last month, but the judgment in the case has only now been published, and it makes for interesting reading. It concerns a borrower at IBRC who is aggrieved that his loans weren’t transferred to NAMA.

Johnny Moran, the businessman behind the Holiday Inn Hotel in Pearse Street, a restaurant in Temple Bar, Tante Zoe’s restaurant, the Blarney Inn Hotel, Kildare Street along with an associated nightclub called Club Nassau, all in Dublin, seems to believe that if his loans had been transferred to NAMA, he would have benefited, but instead he continues to have to deal with pesky IBRC which has taken enforcement action against him in a separate case, which promises to be a good old mudslinging contest with allegations of “breach of statutory duty, breach of regulations, dishonesty, impropriety and fraud”

Johnny sued IBRC saying his loans should have been transferred to NAMA where, he claims, he would have enjoyed the following benefits

(1) “NAMA requires each borrower to submit a business plan whose primary purpose is to present a complete account of its financial affairs and to provide a detailed plan of how and when all liabilities to NAMA will be repaid. It is to be noted that the liability to NAMA is represented by the discounted price paid by NAMA for the original loan” So NAMA acquired loans from the banks with an average 58% discount or haircut, or to put it another way, NAMA paid 42c in the euro on average for the loans it acquired. Johnny thinks that he would have seen a debt write-down in NAMA.

(2) “credit activity continues whilst this process of engagement with borrowers is under way. NAMA has provided significant credit to borrowers”

(3) “were their loans to have been transferred to NAMA that NAMA would have accepted a business plan and would not have proceeded to enforcement”

(4) That NAMA has a comprehensive system for reviewing developer business plans which includes independent reviews and reviews by the “NAMA board, credit committee, chief executive or senior management, based on a cascading system of delegated authorities approved by the board.”

Of course NAMA might say in response to (1) above – as it has frequently in the past – that the full amount of the loan remains payable, though as we are beginning to see, NAMA is “restructuring” loans and developers are being allowed walk away from personal guarantees and personal recourse.

In summary, the judge in the case was having none of it, and decided a specific developer did not have a right to have his loans acquired by NAMA, and in any event, the full amount of the loan would remain payable and there is no evidence to show that NAMA would not have taken enforcement action in a way that was different to the approach of the IBRC.

NAMA has in the past had to contend with developers like Paddy McKillen – when did we stop referring to Paddy as a property “investor”? – who have done their damnedest to stay out of NAMA. It is novel to see a lone developer fighting to get in, though it would appear from the judgment that he might have had unrealistic expectations of life in NAMA.

Advertisement

Share this:

  • Twitter
  • Facebook
  • Reddit

Like this:

Like Loading...

Related

Posted in Banks, Developers, Hotels, Irish Property, NAMA | 2 Comments

2 Responses

  1. on June 26, 2012 at 9:42 am JP

    I can see his point. In the north we have some companies which are at the least balance sheet insolvent and are being kept alive by Nama. Meanwhile Barney Eastwood’s Wildrose Group, which was apparently no more bust than many others, was taken out by IBRC with minimum ceremony.


  2. on June 26, 2012 at 11:55 am Mary Kenny

    MR Dublin. What is important about this and many other cases that are in the courts at the moment is that small businesses in ireland are literally being taken out. These are people that were generating growth in the economy, providing jobs, offering services, not developers who were milking the system to become rich. The developers were offered the protection of NAMA and these businesses are defenceless against a system that is ruthlessly destroying them and getting away with it under current law.Why are job providers and decent hardworking people being punished for the mistakes of a corrupt banking system? Why are business people, who don’t have the resources to defend themselves being wiped out when big legal firms are making millions at their expense?



Comments are closed.

  • Recent Posts

    • Test – 12 November 2018
    • Farewell from NWL
    • Happy 70th Birthday, Michael
    • Of the Week…
    • Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of European Commission commitments
    • Gayle Killilea Dunne asks to be added as notice party in Sean Dunne’s bankruptcy
    • NAMA sues Maria Byrne and Graham Byrne in Dublin’s High Court
    • Johnny Ronan finally wins a court case
  • Recent Comments

    Wisemama on Eddie Hobbs’s US “partner” fir…
    Dorothy Jones on Of the Week…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    John Foody on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Frank Street on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    John Gallaher on Of the Week…
    John Gallaher on Of the Week…
    who_shot_the_tiger on Eddie Hobbs’s US “partner” fir…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Brian Flanagan on Of the Week…
    Robert Browne on Gayle Killilea Dunne asks to b…
  • Twitter Updates

    • Funniest case in Irish legal history? 1. ex-Cllr Fred Forsey convicted of RECEIVING a corrupt payment 2. developer… twitter.com/i/web/status/1… 4 years ago
    • Really looking forward to this at 9pm tonight, esp the first Garda on the scene. Well worth reading this background… twitter.com/i/web/status/1… 4 years ago
    • Tea time on the day the president of the ECB tells us we [in Ireland] are paying more interest on our loans than th… twitter.com/i/web/status/1… 4 years ago
    • “I am grateful for you to refer to Mr Sugarman...on the specific question of Unicredit, responsibility at ECB lies… twitter.com/i/web/status/1… 4 years ago
    • @JMcGuinnessTD now confronts ECB about "the honest whistleblower" @WhistleIRL and his disclosures of liquidity issu… twitter.com/i/web/status/1… 4 years ago
    • Details, including court documents of class action in New York against Ryanair and CEO Michael O'Leary.… twitter.com/i/web/status/1… 4 years ago
    • Draghi tells @paulmurphy_TD the ECB doesn't remove govts, the people do, that's democracy. Bet the people will be m… twitter.com/i/web/status/1… 4 years ago
    • Wow! Draghi says there is no net interest cost for the Anglo bonds whilst they're held by the Irish central bank. T… twitter.com/i/web/status/1… 4 years ago
    Follow @namawinelake
  • Click on date for that day’s posts

    June 2012
    M T W T F S S
     123
    45678910
    11121314151617
    18192021222324
    252627282930  
    « May   Jul »
  • Blog Stats

    • 5,114,124 hits

Create a free website or blog at WordPress.com.

WPThemes.


Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • NAMA Wine Lake
    • Join 1,326 other followers
    • Already have a WordPress.com account? Log in now.
    • NAMA Wine Lake
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Copy shortlink
    • Report this content
    • View post in Reader
    • Manage subscriptions
    • Collapse this bar
%d bloggers like this: