Anglo not insolvent in 2009 when it made loan, Commercial Court told

Evidence was given in a case taken by a businessman challenging orders requiring him to pay €90 million to the National Asset Management Agency arising from unpaid loans advanced by Anglo Irish Bank

Nama, which took over the Anglo loans, was also disputing claims by a businessman  that Anglo had advanced loans negligently. Photograph: Frank Miller

Nama, which took over the Anglo loans, was also disputing claims by a businessman that Anglo had advanced loans negligently. Photograph: Frank Miller

Wed, Jun 26, 2013, 01:00


Anglo Irish Bank was not insolvent in 2009 and continued to operate as a going concern, the Commercial Court heard yesterday.

The evidence was given in a case taken by businessman Kevin McNulty who was challenging orders requiring him to pay some €90 million to the National Asset Management Agency arising from unpaid loans advanced by Anglo Irish Bank.


‘Going concern’
Mr McNulty claimed Anglo had loaned money in 2009 while insolvent but a sworn statement from IBRC, formerly Anglo, had been provided to Mr McNulty saying it was solvent in 2009 and continued to operate as a going concern, Mark Sanfey SC, for Nama, said.

Nama, which took over the Anglo loans, was also disputing claims by Mr McNulty that Anglo had advanced loans negligently and had exercised undue influence over him, the court heard.

Mr Justice Brian McGovern yesterday began hearing proceedings in which Mr McNulty is denying liability to Nama for some €90 million arising from loans allegedly made by Anglo to him and two companies and from guarantees of certain of those loans.

The bulk of the loans, some €82 million, were advanced to Mr McNulty personally, it is claimed.

The loan facilities at issue were increased, extended and refinanced between 2000 and 2009, Nama claims.

National Assets Loans Management (NALM), a Nama company, initiated the proceedings last year against Mr McNulty and others.

When seeking to have the case fast-tracked in the Commercial Court, lawyers for NALM said there were issues concerning “grave irregularities” in the security provided for some of the Anglo loans and other issues about certain asset transfers to Mr McNulty’s wife, Jessica.

The action, listed to run for six days, is against Mr McNulty, Red Bog, Blessington, Co Wicklow, and two of his companies – Ashburton Construction Ltd, and PA Bello Ltd, both with registered offices at Clondalkin, Dublin.


‘Personal guarantees’
The claim relates to an alleged 2009 facilities agreement provided by Anglo and personal guarantees allegedly provided by Mr McNulty in 1998 and 2003 over the liabilities of the two companies.

The case is also against Conal P Byrne, Castlepark, Mill Road, Leixlip, Co Kildare, who is being pursued for €4.1 million arising from a personal guarantee allegedly provided by him in 1998 concerning liabilities of Ashburton. Mr Byrne denies liability and claims he was “sidelined” from the affairs of Ashburton.

Nama informed Mr McNulty in February 2011 it had acquired his liabilities from Anglo but that bank would continue to administer those. After rejecting a business plan, Nama called in the loans in 2012.

The case continues.