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Nama may sue Cullen over debt

Businessman David Cullen, whose property portfolio includes the Turk’s Head Bar and Paramount Hotel in Dublin’s Temple Bar, can be sued in Ireland by Nama in a bid to recover €29m, the Commercial Court has ruled.

The fact Mr Cullen is now living in London and initiated bankruptcy proceedings there earlier this month, just months after the Nama action was commenced, does not deprive the Irish courts of jurisdiction to deal with the application to recover the €29m loans, Mr Justice Peter Kelly ruled.

There was no doubt the loans advanced to Mr Cullen by Bank of Ireland, and later taken over by Nama, were advanced here, are repayable here and everything pertinent to them is here, he added.

He also rejected claims by Mr Cullen there had been culpable delay by a Nama company, National Assets Loan Management Ltd, in initiating the proceedings here such as to deprive NALM of having the case fast-tracked in the Commercial Court.

It was appropriate for both Bank of Ireland and later NALM to have engaged with Mr Cullen from 2009 concerning repayment of the loans and the proceedings were brought only after a business plan proposed by Mr Cullen was rejected last year. If NALM had moved earlier Mr Cullen could have complained, he added.

Other arguments by Counsel for Mr Cullen, including whether the loans were issued for development purposes or were “eligible loans” within the meaning of the Nama Act for takeover by Nama, were matters to be addressed when the court is dealing with NALM’s summary judgment application.

On those and other grounds, the judge granted the application by NALM, to transfer the proceedings to the Commercial Court. He also made directions for exchange of legal documents between the sides before the hearing of the summary judgment application on a future date.

Previously, NALM had alleged Mr Cullen has transferred or charged more than 40 properties to his wife and others.

Mr Cullen, formerly of Claremont Road, Carrickmines, Dublin but now living in London, disputes NALM’s entitlement to security over the properties.

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