NIB settles court action to secure €15m from financier

NATIONAL IRISH Bank has reached a settlement with financier Niall McFadden of proceedings aimed at enforcing judgments for more than €15 million previously obtained against him.

In April 2010, NIB secured €6.3 million judgment orders against Mr McFadden arising from his personal guarantee over a bridging loan to a company to help acquire the Buy Sell classified ads business.

Last July, it secured judgment for a further €8.87 million against him arising from his personal guarantees over an overdraft facility provided to a company of developer Paddy Kelly.

Mr McFadden was due to be cross-examined before the Commercial Court yesterday about his assets and liabilities as part of the bank’s efforts to enforce those judgments.

After talks between the sides, Mr Justice Daniel O’Keeffe was told by John Hennessy SC, for the bank, on consent of Denis McDonald SC, for Mr McFadden, the matter had settled and could be adjourned to April 4th for implementation of settlement. No details of the settlement were disclosed.

Cross-examination of Mr McFadden was sought after the bank received a statement of affairs from him last January listing his actual liabilities to various financial institutions at €35 million and contingent liabilities at €50 million.

NIB expressed concern Mr McFadden had failed to fully disclose his financial position in that statement of affairs and secured an order requiring him to supply a supplemental statement of affairs and attend for cross-examination about that.

At the hearing last January, Mr Justice Peter Kelly said the material provided showed good grounds for saying Mr McFadden had not made the disclosure required of him. If there was a continued failure to comply, the consequences would be “very serious” for Mr McFadden, he warned.

He directed Mr McFadden should appear before the court on March 10th to be questioned about his assets and liabilities and should produce all relevant books and records.

NIB had complained while the January statement of affairs showed actual liabilities of more than €35 million to various financial institutions and contingent liabilities of €50 million, Mr McFadden had not explained how those liabilities arose and whether they comprised loans advanced to him personally.

While reference was made to a public house loan, no details were provided, it said.

A balance of €12.4 million remained due to Anglo Irish Bank on foot of a judgment for €13.3 million against Mr McFadden and it wanted to know how any payment made to Anglo was funded, the bank added.

Mr McFadden had sold his interest in a property in Galway to his wife, Leisa Benner, in 2009 and had sold two vehicles for €100,000 to connected parties but had not explained what happened to those monies, it added.