McFadden in deal with NIB over €15m debt claim
Published 11/03/2011 | 05:00
UNDER-fire financier Niall McFadden has fought off a €15m debt claim with National Irish Bank (NIB).
Yesterday, Mr McFadden, who had been due to be cross-examined about his assets and liabilities as part of a marathon legal action taken by NIB, settled the case after four hours of intensive talks at the High Court.
The terms of the deal are confidential, but it is understood it was agreed with the support of a third-party, white-knight investor who backed the former head of Boundary Capital.
Cross-examination of Mr McFadden was sought after the bank received a statement of affairs from him which was queried by the lender.
In April 2010, NIB secured €6.3m in judgment orders against Mr McFadden arising from his personal guarantee for a bridging loan to a company to help acquire the Buy & Sell classified ads business.
Last July, it secured judgment for a further €8.87m arising from his personal guarantees over an overdraft facility provided to RQB, a company of developer Paddy Kelly.
According to court filings, Mr McFadden's liabilities include €35m in actual liabilities to various banks -- including NIB's €15m exposure -- and estimated future contingent liabilities of some €50m.
NIB is the third lender to have reached a settlement with Mr McFadden.
Allied Irish Banks and Bank of Ireland have recently registered charges against the assets of a wholly-owned Boundary firm in lieu of multi-million loans that had been personally guaranteed by Mr McFadden.