Grehans seek to overturn Nama appointment of receiver

AN ATTEMPT to resolve a dispute over the National Asset Management Agency’s appointment of receivers to a Kildare hotel and leisure centre owned by developers Ray and Danny Grehan has failed, the High Court heard yesterday.

The court will tomorrow hear an application aimed at overturning the receivers’ appointment.

Glenkerrin Properties Ltd and Glenroyal Leisure Ltd are seeking orders against Nama and accountants Paul McCann and Michael McAteer, who were last month appointed receivers to the Glenroyal Hotel and Leisure Centre in Maynooth.

The companies allege there is no lawful basis for the appointment of the receivers or receiver/managers and they want orders restraining the receivers operating the businesses. It is alleged the receivers appear to be contemplating selling the businesses but have not consulted with the directors of the companies about any such proposal.

It is also claimed Ray Grehan has been specifically excluded from property of the companies.

The companies allege there was no security over the businesses of the hotel and leisure centre permitting Nama to appoint a statutory receiver or receiver/manager. Nama was informed of this by solicitors for the companies on May 3rd last, it is claimed.

Nama, it is claimed, appointed the receivers in relation to security allegedly provided by the two companies to Allied Irish Banks under a mortgage deed of December 2002. There was no power under that deed to appoint the receivers and their appointment is invalid, the companies claim.

The companies had sought undertakings from Nama to stand down the receivers by May 12th last but the agency declined to provide those undertakings.

A suggestion by solicitors for Nama that the receivership was limited to secured property only and that the receivers or their agents were not running the hotel and leisure centre conflicts with the reality, the companies claim.

Last week, the High Court heard the parties had agreed to enter talks to try to resolve the matter.

Yesterday, Mark Sanfey SC, for Glenkerrin, said the talks had “not borne fruit” and it was hoped a hearing of the injunction application could take place tomorrow. Paul Gallagher SC, for Nama, said his side were happy with this.

Mr Justice Roderick Murphy adjourned the matter until then.