Nama has spent €51.5m on legal fees since it was set up but expects to recoup €36.16m of this from property developers.
In a response to a parliamentary question by Sinn Féin’s Gerry Adams, Finance Minister Michael Noonan laid out the legal costs incurred by Nama and the firms to whom they were paid. This year alone Nama has incurred costs of nearly €8.5m up to Jun 30 that the bank expects to be able to recoup from developers, a huge number of whom are bankrupt.
Mr Noonan said that where a developer is unable to repay the agency, their legal costs the bill will be added to a developers’ loans.
"Borrower recoverable costs are principally legal fees which Nama has incurred on behalf of Nama borrowers which are recoverable from those borrowers. Where the borrower is in a position to repay such costs Nama will seek repayment in cash. To the extent the borrower is not in a position to repay those costs, Nama will add these costs to the borrower’s debt obligations to Nama."
Nama expects to recover €600,000 it has spent on due diligence so far this year and a further €7.8m inlegal fees that the agency has taken on behalf of its borrowers. Over the life of the agency it has spent a further €14.2m on due diligence and €12.7m on legal fees.
The biggest legal earner in 2012 was A&L Goodbody which earned just shy of €1m on behalf of Nama borrowers. William Fry made about €570,000 representing Nama borrowers in court, while Eversheds O’Donnell Sweeney earned €515,000.