Developer McNamara seeks stay on €62m judgment against him
Published 11/01/2010 | 05:00
DEVELOPER Bernard McNamara will this afternoon seek a stay against a €62.5m personal judgment against him and a €98m judgment against his company Donatex arising from the €412m acquisition of the Irish Glass Bottle site.
The stay on the formal registration and execution of the summary judgments will be opposed by a group of private investors procured by Davy Stockbrokers to acquire the site. The investors have threatened to reveal the alleged indebtedness of the developer.
The investors, which Mr McNamara previously claimed include former AIB chairman Lochlann Quinn and Glen Dimplex founder Martin Naughton, will seek to have the judgments registered and executed immediately because they believe the developer's financial position is rapidly deteriorating.
The investors say they will call evidence to support their view, but Mr McNamara will petition the courts for a stay, pending an appeal against a decision by the Commercial Court in December that neither he nor his company Donatex had offered an arguable defence to the summary debt claims.
The judgment against Mr McNamara, if upheld, will be the largest personal guarantee action to come before the Irish courts.
Through a Jersey-registered company, Ringsend Property Ltd, the investors had applied for the summary judgment orders over loans to Donatex towards the purchase of the Irish Glass Bottle site and a personal guarantee of Mr McNamara over the loan principal.
In December, Judge Peter Kelly directed that the investors were entitled to summary judgment for €98m against Donatex and €62.5m against Mr McNamara, plus costs.
Following the ruling, Martin Hayden, legal counsel for Mr McNamara and his company, applied for a stay on the order.
John Gleeson, legal counsel for the investors, agreed to the judgment order not being made before today and stressed he was doing so to have an opportunity to adduce evidence on affidavit that Mr McNamara's financial situation has indeed deteriorated.
On that basis, the Commercial Court agreed to defer the making of the judgment order until this afternoon when it will be told if Mr McNamara intends to appeal his order.
The Irish Glass Bottle site was bought by a consortium consisting of the Dublin Docklands Development Authority (DDDA), Mr McNamara and another high-profile developer, Derek Quinlan.
In separate proceedings, Mr McNamara is suing the DDDA over the Irish Glass Bottle site business deal.
Mr McNamara, in that action, has claimed that owing to another High Court finding, the DDDA acted outside its powers in fast-tracking permission for another docklands development at North Wall Quay.