Court continues freezing of €1m from property deal

THE NATIONAL Asset Management Agency (Nama) is concerned about a possible transfer of €1 million investment money to the children of a developer and his wife in circumstances where that couple are being pursued over unpaid property loans of some €50 million and are said to be insolvent, it emerged at the Commercial Court yesterday.

AIB, after securing authorisation from Nama, earlier this month secured an interim assets freezing order against Thomas and Patricia Joyce Rosbeg, Westport, Co Mayo, restraining them from dealing with some £900,000 (€1.07 million) payable as a result of an investment in a property at King’s Road, Chelsea, London.

The couple denied they owned the investment and claimed it was owned by a partnership, the Summerville Partnership. AIB said it was unaware of the make-up of that partnership but claimed it was reasonable to infer it comprised the couple and others including persons related to them. Mr Justice Peter Kelly yesterday continued the freezing order at the request of Jarlath Ryan for AIB, who said he was concerned about remarks appearing to indicate the €1 million sum was payable to their children.

Gary McCarthy SC, for the couple, had earlier said they were prepared to give an undertaking in the terms of the freezing order. The funds at issue were held by AIB Investment Managers and there was no possibility of a dispersal of them. His side’s case had always been the funds belonged to the Summerville Partnership, not his clients, and AIB had been told in 2004 that the money was going to the partnership, which involved his clients’ children.

Mr Justice Kelly said the undertaking offered would be binding only on the couple when they themselves had no drawing rights on the €1 million and such rights appeared to belong to their children. In those circumstances, the judge said he would continue the freezing order and listed the injunction again in two weeks’ time. AIB is seeking €50.5 million judgment orders against the Joyces and €9 million against their property company, Thomas S Joyce Sons (Castlebar), arising from loans issued by the bank but since acquired by Nama.

The claim relates to loans and facilities made from 2008 to the couple and the company, and from guarantees of them over various loans. The action will be heard in the Commercial Court this year.

On January 7th last, AIB sought an interim freezing order against the couple arising from the sale of the London property. The bank claimed AIB Investment Managers had, in 2004, provided finance to Mr and Mrs Joyce and others to invest in the property with £500,000 advanced to the Joyces being later repaid by them. AIB said it provided £38 million in senior debt on the property investment and the Joyces had a 2.5 per cent share in the investment.

AIB said the property appeared to have been sold for £66.5 million shortly before Christmas last and it appeared the Joyces would be entitled to some €1 million. AIB said it believed that sum might be the only means of paying any unsecured portion of any judgment obtained by the bank in this case.