McNamara challenges court action to declare him bankrupt

PROPERTY DEVELOPER Bernard McNamara is challenging a petition to declare him bankrupt, claiming he was owed 50 times the sum due to two individuals who are pursuing him, his lawyers have told the High Court.

Gary Smith and Ivor Dougan are seeking €2.24 million from Mr McNamara on a judgment arising from a property deal relating to a retail and commercial development off Grafton Street in Dublin.

Mr McNamara, who has debts of €1.5 billion, is seeking to have the bankruptcy petition dismissed.

Bernard Dunleavy, for Mr McNamara, told the court the two men had not made a candid declaration in relation to the security they hold on the debt. His client was owed a sum of €101 million by the two individuals, some 50 times in excess of the sum they were owed, he said.

Mr Justice McGovern asked whether a set-off agreement over these debts pre-existed their claim. Mr Dunleavy said it was “part and parcel” of the same liability and that it existed as a potential claim but it did not become a reality as it was not clear that Mr McNamara would be exposed.

The judge adjourned the matter until July 26th and ordered that an affidavit be filed in advance setting out the position so the matter could be dealt with before the end of the legal term on July 31st.

The Dublin City Sheriff has seized art and other valuables from Mr McNamara’s home on Ailesbury Road on foot of a warrant for the €2.24 million debt.

In December 2008, a case taken by Mr Dougan, Mr Smith, Pascal Taggart, Terry Cooney and Shane Taggart against Mr McNamara was struck out in the Commercial Court after the court was told the matter had been settled.

The case was re-entered last February, and Mr Dougan and Mr Smith secured a judgment for €2.24 million against Mr McNamara the following month. An execution order was issued in May allowing the sheriff to seize property owned by him.

The parties had originally agreed to a plan to develop a shopping centre in the area around the Westbury Hotel and surrounding streets. Mr McNamara could not raise finance to complete the deal.