Court to hear Nama case against Grehan brothers for €270m
AN APPLICATION by the National Assets Management Agency (Nama) for summary judgment orders of up to €270 million against brothers Ray and Danny Grehan has been listed before the Commercial Court on Friday.
The sums claimed relate mainly to guarantees provided over multi-million euro borrowings of companies of the brothers but also includes personal borrowings of €27 million for Raymond Grehan and €22 million for Danny Grehan.
The brothers failed yesterday in their effort not to have the cases fast-tracked into the Commercial Court and Mr Justice Peter Kelly has given them until Friday to outline any defence they may wish to advance.
Mark Sanfey SC, for the brothers, opposed transfer on grounds of delay by Nama in bringing the action.
However, the judge upheld arguments by Ciarán Lewis, for the Nama subsidiary company bringing the case, that the delay was explicable on grounds including having to await the outcome of High Court proceedings where the brothers unsuccessfully sought to restrain actions by Nama-appointed receivers to two of their companies.
His client had also been involved in talks with the borrowers and a memorandum of understanding had been agreed, Mr Lewis said. That had not been complied with and consultations between the sides did not achieve a resolution.
Mr Lewis said his client was concerned to have the proceedings fast-tracked as it was concerned about €18 million expected to be realised from the sale of a property in England. His client wished to have the benefit of that sum, even if it was small given the scale of the borrowings, counsel said.
The judge said he would transfer the cases but adjourned them to Friday to allow Mr Sanfey to take instructions concerning any possible defence.
In its proceedings against Raymond Grehan, Crinnstown, Maynooth, Co Kildare, National Asset Loan Management Ltd is claiming summary judgment for about €270 million, comprising about €27 million arising from personal borrowings and the remainder – about €242 million, arising from guarantees over borrowings of companies, including some €195 million borrowings of Glenkerrin Homes.
In its proceedings against Danny Grehan, also of Crinnstown, Maynooth, National Asset Loan Management is claiming summary judgment for about €265 million on foot of multiple loan agreements and multiple guarantees. The claim relates to about €22 million personal borrowings and guarantees of company borrowings totalling about €242 million.
Proceedings have also been brought against two of the brothers’ property partnerships – the Ashford Partnership, which owns land in Co Wicklow, and the St Lohman’s Partnership, which owns land in Lucan, Co Dublin.
Nama took control of properties owned by the Grehans in April with the appointment of receivers over loans of about €650 million. The brothers challenged the appointment and Nama temporarily stood the receivers down to give them time to repay the loans before the receivers were reappointed within days.
An administrator was also appointed to their UK property assets.