Nama closes in on Grehan loans

THE NATIONAL Assets Management Agency has secured court orders enabling it to move against UK assets of developer brothers Raymond and Daniel Grehan as part of its efforts to recover unpaid loans of more than €300 million.

Mr Justice Peter Kelly yesterday granted an application by Ciarán Lewis, for Nama, for European Enforcement Orders against both brothers, who have addresses in London. The application was made on an ex parte basis.

The orders allow Nama apply to the courts of all EU member states in its efforts to execute judgments obtained in the Comemrcial Court.

Last month, the brothers consented to summary judgment orders totalling more than €300 million being entered against each of them at the Commercial Court in favour of Nama.

The orders arose mainly from guarantees provided over multimillion-euro borrowings, mainly from AIB, of the brothers’ companies but also included personal borrowings of €27 million for Raymond and €22 million for Daniel.

Smaller judgment sums were sought in relation to two of the brothers’ property partnerships: the Ashford Partnership and the St Lohman’s Partnership.

The orders meant summary judgment for about €312 million could be entered against Raymond and for about €307 million against Daniel. The orders granted yesterday relate to about €269.6 million of the judgment entered against Raymond and to about €264.8 million of the judgment obtained against Daniel.

The Grehans previously argued AIB had loaned substantial monies on short-term facilities in the knowledge they could not be repaid in the short term. AIB wanted to lend on short terms to avoid the due diligence required for more formal loans, and the totality of the relationshop with the bank should be examined, they argued.

Nama had argued that because AIB, when transferring the relevant loans to Nama, had certified that they were short-term facilities, the Nama Act prohibited the Grehans making claims about their alleged understanding with that bank concerning repayment.