Court grants stay of €170m judgment in favour of NAMA

The High Court has granted three companies in the Dublin-based Moritz Group a stay for three months on entry of orders requiring them to repay more than €172m to the National Assets Management Agency (NAMA).

The agency had opposing the stay application. However the companies argued that a stay would help the save jobs within the group and allow them realise and maximise the value of assets for their benefit and NAMA's.

NAMA had brought proceedings seeking summary judgment orders for €137.6m against Maplewood Developments, €95.3m against Moritz Holdings and €74.6m against Rumbold Builders over unpaid loans advanced by Allied Irish Banks, Bank of Ireland and Anglo Irish Bank (now Irish Bank Resolution Corporation).

NAMA acquired the loans on dates from October to December 2010. The companies separately owe some €280m to Ulster Bank.

The three companies had consented to summary judgment orders for €70m in the case of Maplewood, €27.8m for Moritz Holdings and €74.6m for Rumbold Builders, all with registered offices at Firhouse, Dublin 24.

It was further agreed the NAMA application for judgment for the balance of the monies sought by NAMA would be determined at a full hearing of the agency's claim, at a later date.

At the Commercial Court, the big business division of the High Court today, Mr Justice Peter Charleton granted the three companies a stay on judgment being entered against them until June 28 next.

Based on the facts before him the Judge said he was satisfied the group, which he held has always tried to act in good faith in its dealings with NAMA, had made out an arguable case that they were entitled to the stay.

The Judge added however that he did not accept the companies contention that NAMA had acted unreasonably or outside its code of conduct by refusing the stay.

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