Friday 30 January 2015

McDonagh won't have to face questions from Dunne's lawyers

Orlaith Farrell

Published 30/07/2014 | 02:30

Nama's Brendan McDonagh
Nama's Brendan McDonagh

NAMA CEO Brendan McDonagh won't have to answer questions from Sean Dunne's lawyers in the US about the state agency's handling of the developers portfolio.

A request to a US bankruptcy judge to compel the deposition of Mr McDonagh was rejected yesterday in Connecticut.

Judge Alan Shiff told lawyers for Mr Dunne that they could not probe specific personnel at the agency but must outline the areas they wished to investigate and allow NAMA to put forward the relevant staff.

Lawyer for NAMA Thomas Curran replied "correct" when Judge Shiff suggested it was his case that Mr McDonagh, "didn't know anything."

During the hearing, Mr Dunne's attorney James Berman told the Bankruptcy Court in Connecticut that the two staff members suggested by NAMA for questioning over Mr Dunne's dealings with the agency didn't take part in key meetings.

However the judge directed Mr Berman to designate areas that his client wished to probe and allow the 'bad bank' to decide which staff members were most suitable, adding: "If they are deceiving the court, you can deal with that as it comes up."

NAMA is owed €185 million by the bust developer who filed for bankruptcy in the US in March of last year with debts of €700 million.

NAMA objects to his discharge from debt on the grounds the Carlow-born businessman "knowingly and fradulently" transferred assets.

NAMA, through its subsidiary NALM (National Asset Loan Management) is also seeking to force the developer to hand over details of a Swiss bank account.

Irish Independent

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