Nama secures orders of €619m against Grehans

PROPERTY DEVELOPERS and brothers Ray and Danny Grehan have consented to summary judgment orders for more than €300 million being entered against each of them at the Commercial Court in favour of the National Assets Management Agency (Nama).

The orders – for about €307 million against Danny Grehan and about €312 million against Ray Grehan – are the biggest obtained by Nama to date against individuals and also represent the largest judgment sums entered to date at the Commercial Court against individuals under personal guarantees.

Mr Justice Peter Kelly entered judgment in those sums yesterday against both brothers after being told they were consenting to the orders.

Their counsel said that given the “extremely large” sums involved, they had been anxious to take legal advice but, despite having “genuine concerns” in relation to the sums sought, they had decided the “better course” was to consent to judgment.

Paul Gallagher SC, for Nama, said the consent to judgment had been secured earlier yesterday.

The Nama claim arose mainly from guarantees provided over multi-million euro borrowings by companies owned by the brothers but also included personal borrowings of €27 million for Raymond Grehan and €22 million for Danny Grehan.

The Grehans previously argued that Allied Irish Banks had loaned substantial monies on short-term facilities in the knowledge they could not be repaid in the short term. AIB wanted to lend on short terms so as to avoid the due diligence required for more formal loans and the totality of the relationship with the bank should be examined, it was argued.

Mr Justice Kelly had granted time to the brothers to make that case and other claims on affidavit.

In its responding submissions, Nama had argued that because AIB had certified when transferring the relevant loans to Nama that they were short-term facilities, the Nama Act prohibited the Grehans making claims about their alleged understanding with that bank concerning repayment.

When the matter came before Mr Justice Kelly for hearing yesterday, he was asked by Mr Gallagher for a half-hour adjournment to facilitate settlement talks.

When the court resumed, Mr Gallagher said there was consent to judgment in the sums sought.

In its proceedings against Raymond Grehan, Bateman’s Row, Shoreditch, London, the National Asset Loan Management Ltd sought summary judgment for about €269 million, comprising about €27 million arising from personal borrowings and the remainder – about €242 million, arising from guarantees over borrowings of companies, including some €195 million borrowings of Glenkerrin Homes.

In its proceedings against Danny Grehan, Prince’s Park Parade, Hayes, Middlesex, the National Asset Loan Management Ltd sought summary judgment for about €265 million on foot of multiple loan agreements and multiple guarantees.

The claim related to about €22 million personal borrowings of Mr Grehan and guarantees of company borrowings totalling about €243 million.

Proceedings were also brought against two of the brothers’ property partnerships – the Ashford Partnership, which owns land in Co Wicklow, and the St Lohman’s Partnership, which owns land in Lucan, Co Dublin.

Arising from those claims, the judge entered summary judgment in additional sums of almost €43,000 each against both brothers.

The effect of the orders was that summary judgment for about €307 million against Danny Grehan and about €312 million against Ray Grehan.