McFadden faces queries on assets
Published 25/01/2011 | 05:00
FINANCIER Niall McFadden is to face cross-examination about his assets and liabilities as part of a bank's efforts to enforce judgments against him for more than €15m.
The Commercial Court heard a statement of affairs from Mr McFadden listed his actual liabilities to various financial institutions at €35m and contingent liabilities at €50m.
National Irish Bank (NIB), which obtained the €15m judgment against him, expressed concern yesterday that he failed to fully disclose his financial position in that statement of affairs presented to the court earlier this month on foot of an order made last December.
NIB sought an order requiring Mr McFadden to supply a supplemental statement of affairs and attend for cross-examination about that.
Rossa Fanning, for Mr McFadden, said a supplemental statement of affairs would be supplied within two weeks.
Mr Justice Peter Kelly said the material provided showed good grounds for saying Mr McFadden had not made the disclosure required of him. Mr McFadden would have to provide a full statement of his assets and liabilities as provided for under the court order.
If there was a continued failure to comply, the consequences would be "very serious" for Mr McFadden, the judge added.
He also directed Mr McFadden should appear before the court on March 10 to be questioned about his assets and liabilities and should produce all relevant books and records.
NIB complained he had not explained how the €50m liabilities arose and whether they comprised loans advanced to him personally. While reference was made to a public house loan, no details were provided.
NIB also said it appeared a balance of €12.4m remained due to Anglo Irish Bank on foot of a judgment for €13.3m against Mr McFadden. NIB said it wanted to know how any payment made to Anglo was funded.
The bank also said Mr McFadden had sold his interest in a property in Galway to his wife, Leisa Benner, in 2009 and also sold two vehicles for €100,000 to connected parties but had failed to explain what happened to those monies.
NIB also complained Mr McFadden had not provided any information about his personal circumstances and whether he was working or had any source of income.
It believed his family home was located at Avoca Wood, Blackrock, Dublin, and that property was owned by Ms Benner. Mr McFadden had previously stated he was living at an address at St James Street, London, but had failed to disclose any interest in that property, the bank added.
NIB is also seeking information about any pensions of which Mr McFadden may be a beneficiary and whether he continues to have any interest in two hotels, the LL Hotel and the Clarion Hotel at Dublin Airport.