Wednesday 22 November 2017

Developer 'shocked' at Nama sale of his loans

Tim Healy

A developer is resisting a receiver's application for injunctions restraining interference with a bid to take possession of 57 apartments in Dublin's docklands, the High Court heard.

Hugh McGinley, from Lifford in Donegal, says he and his son Daniel devoted years to enhancing the value of the apartments at Alexandra Place, East Road.

Unlike Promontoria Eagle Ltd (PEL), a firm that bought his loans and "which did not even exist until last year", his company was a source of employment since 2000, he said.

He had "stuck with it through the darkest of times" and wished it to provide employment "long after the international financiers behind PEL have moved on from these shores to other pastures for further short-term profit opportunities".

He had planned to sell the 57 apartments this year, which could realise up to €14m for Nama and the State.

An estate agent was appointed in February, 2014, he said.

However, Nama had in April 2014 sold his Bank of Ireland loans to the PEL, he said. He first learned of the sale of his loans from a report on RTE and was "shocked".

PEL is a Dublin-registered firm. Mr McGinley claims its directors include executives of Cerberus, which acquired Nama loans held by Northern Ireland debtors last year.

Mr McGinley claims some €30m loans, €3m personal and some €26m of his company, McGinley Construction Ltd, were sold by Nama to PEL in breach of a management/workout agreement.

That agreement provided his company would sell the apartments in 2015, along with other assets in Counties Donegal and Tyrone, he claims. He also says his efforts to reach a deal with PEL, including an offer of up to €11m, have come to naught.

Mr McGinley is opposing an application by Stephen Tennant of Grant Thornton, appointed receiver earlier this year over the 57 apartments at Alexandra Place and other assets, for injunctions restraining interference by Mr McGinley and his company with efforts to take possession of the apartments.

The case continues before Mr Justice David Keane.

Irish Independent

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