McNamara and investors may settle Ringsend case today

A SETTLEMENT is expected to be announced today of an action in which a group of private investors sued developer Bernard McNamara for €62.5 million over non-repayment of loans advanced to him and his company Donatex to help acquire the Irish Glass Bottle site at Ringsend in Dublin.

If the settlement is confidential, as the sides indicated it would be, Mr McNamara will not have to file in court a statement of his assets. He had previously indicated he did not wish “unnecessary material” about his financial position being made public.

Lawyers for both sides told Mr Justice Peter Kelly yesterday the settlement agreement was complex and negotiations had continued up to late on Monday night but the sides expected it would be executed within 24 hours.

Declan McGrath, for the investors, asked for one more adjournment to allow that occur while Gary McCarthy, for Mr McNamara, said he was confident the settlement would be signed and the matter would no longer trouble the court. The expected settlement would also contain a confidentiality clause, he added.

The judge, who had granted one final adjourmment of the proceedings to yesterday said, in those circumstances, he would allow it to be again adjourned to today.

The judge added he could not understand why the settlement could not have been reached for yesterday’s court.

It seemed “like brinkmanship”, he remarked.

The proceedings were brought by Ringsend Property Ltd (RPL), a Jersey registered company representing investors including Martin Naughton, Lochlainn Quinn and the Coolmore Stud.

RPL had secured summary judgment for some €62.5 million last January against Mr McNamara over the failure by his company, Donatex Ltd, to repay loans advanced towards the €412 million purchase of the Ringsend site.

They then sought payment under that judgment but the proceedings were adjourned on consent a number of times while settlement talks continued.

The investors had also agreed Mr McNamara could defer lodging a statement of his assets and liabilities in court. That financial statement was, however, provided to the investors who have agreed to keep it private.

Mr McNamara previously said he has no unencumbered assets and was unable to pay the €62.5 million. The investors said they understood Mr McNamara has “extensive assets” held personally or through Irish companies and offshore companies, partnerships, joint ventures or other instruments.