NIB sues 'Buy & Sell' financier for €6.3m

FINANCIER NIALL McFadden, who put together a €28 million deal to purchase Buy & Sellmagazine, is being sued for €6.3 million by National Irish Bank (NIB) arising from personal guarantees given by him over loans.

Naldin Ltd, the parent company of the Buy & Sell group of companies, was placed in receivership last week. Naldin and other companies had been placed under court protection but that was removed on September 30th on the application of examiner Tom Kavanagh.

NIB told the Commercial Court yesterday that Mr McFadden informed it on September 28th that he was now located in London. The bank expressed concern he might seek to frustrate its attempts to obtain judgment against him for the €6.3 million by seeking to realise "what is perceived to be a more debtor-friendly bankruptcy procedure in England".

Mr Justice Peter Kelly yesterday transferred the proceedings against Mr McFadden to the Commercial Court on the application of James Doherty, for NIB, and listed the application for summary judgment for November 5th next.

Rossa Fanning, for Mr McFadden, said his client would be relying on a handwritten notation on the guarantee document and the absence of any indication that Mr McFadden was asked to approve amendments to the loan agreement.

In separate proceedings, Mr McFadden is being sued for €8.56 million under another personal guarantee.

In the NIB action, the bank said the urgency of its application arose from the fact it had advanced more than €18 million to Naldin Ltd secured on charges over the entire assets and undertaking of Naldin, B&S Ltd and Buy & Sell Northern Ireland Ltd.

The bank had demanded payment of some €18.87 million from Naldin on September 24th last but no payment was made. NIB said it had now appointed a receiver over all three companies but the secured assets would not be enough to discharge the debt due to it.

NIB said it had taken some comfort from a guarantee by Mr McFadden, especially where he also undertook that, as long as he remained under any obligation to NIB, he would maintain unencumbered assets with an open market value of not less than €20 million.