Judge to revisit ruling on McInerney rescue
Published 22/01/2011 | 05:00
A High Court judge will revisit his own decision to reject a rescue proposal put forward for the McInerney construction group, after being told loans to the company are set to be transferred to NAMA.
Mr Justice Frank Clarke will review his decision not to allow McInerney to execute a scheme that involved writing off much of its debts after the judge learnt that loans owed by the group are likely to be transferred to NAMA.
The judge said the transfer to NAMA was a material fact that was not before the court when he made his original decision on January 11.
In that initial ruling, the judge backed arguments by Bank of Ireland, Anglo Irish Bank and KBC that they should not have to accept €25m from McInerney as repayment for €113m of loans -- a key part of the proposed rescue plan.
As a result, he rejected the proposal that had been put forward by the company's examiner. Mr Justice Clarke said the banks should be allowed to pursue their own alternative proposal to recover €50m on the loans by appointing a receiver to work out McInerney's assets over 11 years.
Lawyers for McInerney sought a review of that decision last Friday, before the judge handed down his formal decision on the case.
They made the move after learning that loans owed to Bank of Ireland and Anglo are set to be transferred to NAMA. Transferring the loans to NAMA raised significant questions about the likelihood of the receivership alternative being followed through.
Yesterday the judge said both sides were at fault for not raising the NAMA issue during the original case.
He agreed to revisit his decision and asked for fresh submissions to be made by both side. The case has now been adjour- ned to next week.
Mr Justice Clarke said he hoped the matter could be finalised "as soon as possible".