Business Irish

Thursday 22 February 2018

Fifty six NAMA debtors, owing total of €8bn, declare as bankrupts

Gordon Deegan

FIFTY SIX NAMA debtors, who owe a total of €8bn, have declared themselves bankrupt.

Forty four of the debtors have declared themselves bankrupt in the UK, 11 in Ireland and one in the US, Finance Minister Michael Noonan told Fianna Fail Finance spokesman Michael McGrath.

At the start of 2013, the number of NAMA bankrupts was 48 and since then the numbers of developers declaring themselves bankrupt has increased by eight, with seven declaring themselves bankrupt in the UK and Sean Dunne declaring himself bankrupt in the US.

Minister Noonan said that NAMA has enforcement over the assets of those who have declared themselves bankrupt "securing these loans and NAMA continues to realise these assets."

He said: "When a debtor goes bankrupt what is generally available is the remaining unencumbered or unsecured assets."

Some of those declaring themselves bankrupt were some of the most high-profile developers during the boom, including Bernard McNamara, Ray Grehan, Paddy Shovlin and Mr Dunne, whose bankruptcy is being challenged in the US.

Mr Noonan confirmed that NAMA "is currently challenging bankruptcy applications on the basis of Centre of Main Interest (COMI) in two instances and in a further case is supporting the application of another secured bank with a view to having bankruptcy proceedings take place in Ireland."

The more favourable bankruptcy regime in the UK, where debtors can exit bankruptcy after one year, has resulted in 79pc of the NAMA bankrupts declaring themselves bankrupt in the UK.

Irish Independent

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