Tuesday 19 February 2019

€100M judgment against 'Maple 10' developer McCabe

Tim Healy

WELL-known property developer John McCabe has been ordered to repay more than €100m to NAMA mainly over loans to companies in his building group and his personal guarantees of loans.

His firm, McCabe Builders (Dublin), was behind the so-called "millionaires' row" development at Abington in Malahide, Dublin.

He was also one of 10 customers of the former Anglo Irish Bank, known as the "Maple 10" who each bought a 10pc stake in the bank.

NAMA also yesterday secured summary judgment orders in various sums against Mr McCabe's wife and children related to various loans and guarantees.

Judgment for about €31m was entered against Mrs Mary McCabe; some €36m against her son John; some €29m each against her daughters Angela, Pauline and Sandra and some €18.3m against her daughter Helen McCarthy.

NAMA brought the proceedings in the Commercial Court against the McCabes arising from its "disquiet" over events that last month led to it obtaining court orders freezing the assets of Mr McCabe, Rath Stud, Ashbourne, Co Meath, and his family.

NAMA sought those orders after raising fears some €6.2m of assets that should have been ring-fenced to pay off debts was "misappropriated or dissipated" without consent of the agency. It was claimed almost €5m had been diverted into an account in the Middle East while other monies had been used to repay loans to a non-NAMA bank.

The McCabes, whose group of companies owe NAMA more than €235m, had denied any wrongdoing.

Yesterday, Rossa Fanning, for NAMA, asked Mr Justice Peter Kelly to enter summary judgment orders in various amounts against Mr McCabe, his wife and children.

While the McCabe connection of related building facilities was being managed positively until last summer, NAMA had since made discoveries causing it disquiet and leading to it seeking account freezing orders were secured, Mr Fanning said.

No replying affidavits were provided by the McCabe side in the freezing order applicaitons, counsel added.

He secured orders from Mr Justice Kelly fast-tracking NAMA's actions against the McCabes arising from a series of loans and guarantees, most of which were advanced by the former Anglo Irish Bank with others advanced by Bank of Ireland and Allied Irish Banks.

All the loans had been transferred to NAMA.

The judge said he was satisfied to enter summary judgment in the sums sought and he also granted European EnforcEment Orders meaning the judgments can be enforced across Europe.

Earlier, Bernard Dunleavy, for the McCabes, said, while they were not contesting the judgment order applications, they regretted the breakdown of relations with NAMA and did not accept the allegations of bad faith.

Mr Justice Kelly entered judgment orders totalling more than €100m against John McCabe Senior arising from several loans and guarantees.

That sum included judgment for about €88m arising from loans made by Bank of Ireland and Anglo Irish Bank, plus Mr McCabe's personal guarantees of liabilities of his wife, son John, daughters Angela, Pauline and Sandra, and four companies in the McCabe group. Demand for repayment of the loans was made by NAMA last August.

Accountant Kieran Wallace of KPMG was previously appointed liquidator of McCabe Builders (Dublin), after recruitment firm MCR Personnel applied to have the company wound up over an alleged unpaid debt.

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