Tuesday 27 September 2016

Developer 'disclosed stake in casino to Nama'

Peter Flanagan Commercial Property Editor

Published 06/04/2016 | 02:30

Developer Ray Grehan says he did disclose his stake in a Dutch casino to Nama when it took over his debts (stock picture)
Developer Ray Grehan says he did disclose his stake in a Dutch casino to Nama when it took over his debts (stock picture)

and he claims he was "unaware" that a controversial Panamanian law firm was used to manage part of his business affairs.

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His business dealings come up in documents from Panamanian law firm Massock Fonseca which were leaked to the media.

Mr Grehan was a major developer during the boom through his company Glenkerrin Homes. He was declared bankrupt in the UK in 2011.

The Panamanian documents show Mr Grehan transferred his share in a casino in Holland in 2011 to a company in the British Virgin Islands (BVI) called Subiaco, established by Mossack Fonseca.

Mossack Fonseca is reported to have told regulators on the islands in March 2012 that the beneficial owner of the company was Marcelino Alvarez Garcia, with an address in Spain.

In a statement, Mr Grehan said he disclosed his 25.45pc interest in the Casino Vastgoed, Amsterdam, to Nama both in his statement of affairs dated October 15, 2010, and in the Glenkerrin Group Business Plan dated September 15, 2010.

It is understood Nama was already fully aware of Mr Grehan's stake in the Amsterdam casino. He said it was also disclosed to his UK Bankruptcy Trustees in January 2012.

"Subiaco Limited was incorporated as a vehicle to hold this investment in June 2011 by Beacon Company Secretaries Limited, based in Celbridge.

"I did not at any time have any dealings with Mossack Fonseca or Marcelino Alvarez Garcia and was unaware of their involvement," Mr Grehan said.

"In June 2012, the casino was valued at €53m, with a bank debt of €58m. The investors were notified by ING Bank that in order to extend the term of that loan they would each need to make an additional capital investment of €152,000.

"My bankruptcy trustees, in consultation with Nama, determined that such an additional investment would be 'highly speculative' and would not result in a benefit for my bankruptcy estate or my creditors."

He said he surrendered his interest in the investment "with the knowledge and consent of my bankruptcy trustees". "Neither I nor Subiaco Limited nor any member of my family received any payment or benefit for doing so."

Irish Independent

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