NAMA learned developer Bernard McNamara had filed for bankruptcy in the UK on the same day the agency notified its intention to ask the Commercial Court to fast-track proceedings for €27.5m summary judgment orders against him, it emerged yesterday.
Given Mr McNamara's adjudication as a bankrupt in the UK on November 6 last, National Asset Loan Management Ltd (NALM), a company of NAMA, has decided to discontinue its summary judgment proceedings here, Niamh Hyland SC, told the court yesterday.
Counsel said NALM had issued the proceedings last September and, on November 6 last, filed a motion returnable for November 19 seeking that the case be fast-tracked in the Commercial Court.
However, it found out at lunch time on November 6 that Mr McNamara had been declared bankrupt in the UK earlier that day.
Mr Justice Peter Kelly directed that Mr McNamara, with an address at Yeats House, Brackley Terrace, Chiswick, London, be called in court. When there was no appearance, the judge said he would grant the application to discontinue.
The NAMA proceedings arose from its takeover of loans made by Bank of Ireland, which were connected to Mr McNamara.
A €28.48m loan was made in November 2009 to re-finance existing facilities, to fund interest roll-up and to fund various costs relating to lands at Kilmashogue, Rathfarnham, Co Dublin, NAMA claimed.
It was claimed Bank of Ireland's recourse to Mr McNamara related to that loan agreement and was limited to some €20m, plus the property and assets provided as security.
However, it was alleged the loan agreement was later amended to increase the recourse to Mr McNamara to a sum of €27.5m.
NAMA claimed, by June 30 last, some €30.7m was due and owing under the 2009 loan agreement. Last July, it issued a demand for payment of €27.5m, representing the maximum recourse to Mr McNamara.