Court protection over debt removed from James Nugent

Protection granted last month to developer James Nugent of Maple 6 in Dublin in respect of a multimillion euro bank debt was removed at the High Court sitting in Cork yesterday.

Danske Bank, which claims that Mr Nugent owes it €9.5m, applied to have the debtor adjudged bankrupt. Last month the Personal Insolvency Practitioner (PIP) had been granted an ex parte protective certificate.

The bank was successful yesterday in its application to have that protective certificate set aside.

Ms Justice Marie Baker said in her judgment yesterday: “In my view there has been material and culpable non-disclosure and in the circumstances I propose making an order setting aside the order made ex parte on February 10.”

An application had been made for the period of the protective certificate to be extended on the grounds that Mr Nugent expected to be in a position to complete the contracts for the development of 1,000 nursing home beds in respect of which he hoped to recover €4m for distribution to creditors in the context of a personal insolvency arrangement.

Ms Justice Baker noted that the application by PIP sworn by Tom Murray last month described the debtor’s financial affairs as extremely complex but were expected to provide “a brilliant return for creditors if successful.”

The judge also noted that Danske Bank argued that the debtor had failed to disclose the true details of the possible source of funds.

Ms Justice Baker commented yesterday, “It is not my role at this hearing to consider the true position of the finances of Mr Nugent, but I do consider that the affidavit grounding the application for the extension of a protective certificate wholly failed to identify the true picture with regard to the projected funds.

“I consider that the PIP failed to make appropriate disclosure and that some of the matters are matters which might have affected my mind in hearing the application for the extension of the protective certificate,” she said.