Grehans consent to €600m judgment

 

Developer brothers Ray and Danny Grehan have consented to summary judgment orders for more than €300 million being entered against each of them at the Commercial Court in favour of the National Assets Management Agency (Nama).

Mr Justice Peter Kelly entered judgment in sums totalling just over €300 million against both brothers today after being told they were consenting to the orders.

Their counsel said, given the extremely large sums involved, they were anxious to take legal advice and, despite having "genuine concerns" in relation to the sums sought, had decided the "better course" was to consent to judgment.

Paul Gallagher SC, for Nama, said the consent to judgment had been secured earlier today.

The Nama claim arose mainly from guarantees provided over multi-million euro borrowings of companies of the brothers but also included personal borrowings of €27 million for Raymond Grehan and €22 million for Danny Grehan.

The claim also related to partnerships in which they were involved.

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 so as to avoid the due diligence required for more formal loans and the totality of the relationship with the bank should be examined, it was argued.

Mr Justice Kelly had granted time to the brothers to make that case on affidavit but, when the matter came before him for hearing today, he was asked for a half hour adjournment to facilitate settlement talks.

When the court resumed, Mr Gallagher said there was consent to judgment.