Nama pursues developer Garrett Kelleher for €47m

Agency claims €350m outstanding on loans for developments

Garrett Kelleher: will contend he was assured he would not be pursued under his guarantee given his “extensive co-operation” with Nama.

Garrett Kelleher: will contend he was assured he would not be pursued under his guarantee given his “extensive co-operation” with Nama.

Wed, Jul 23, 2014, 01:00

The National Asset Management Agency is pursuing businessman Garrett Kelleher for some €46.8 million in summary judgment orders. They arise mainly from a limited guarantee relating to loans made by Anglo Irish Bank for developments in Ireland, the US and Belgium.

Nama claims some €350 million is outstanding under those loans and Mr Kelleher is liable under guarantee for €40 million.

Mr Kelleher will contend he was assured he would not be pursued under his guarantee given his “extensive co-operation” with Nama, his counsel Michael Cush SC told the Commercial Court.

The agency is also seeking summary judgment against Mr Kelleher for an additional €6.8 million arising from facilities advanced to CWD Properties Ltd from 2005 in connection with a scheme at Cratloe Woods, Limerick.

The €40 million claim against Mr Kelleher, with an address at Herbert Park, Ballsbridge, Dublin, arises from his guarantee, limited to some €50 million of the liabilities of some companies of the Shelbourne Connection. Some €10 million was recovered due to Nama calling in a guarantee of a company with the effect, Nama claims, Mr Kelleher remains liable for some €40 million.

Developments linked with the Shelbourne Connection include the Spire in Chicago, Nama said.

Nama said the loans in this case went to CWD Properties Ltd and Modillion Borrowers, which formed part of a group of companies identified by Nama as the Shelbourne Connection, ultimately owned by Mr Kelleher. When Nama acquired the loans in 2010, the debt was some €400 million and is now €350 million, it added.

The judge made directions for exchange of legal documents between the sides and fixed the application for hearing in October.

In its claim, Nama said it had engaged extensively with Mr Kelleher with a view to working out an overall resolution of the Shelbourne Connection debts. It rejected a business plan by him in July 2011 but continued to engage and provided interim conditional support for the Shelbourne Connection for a further six months.