Court hears Murtagh is insolvent

BUSINESSMAN Brendan Murtagh is insolvent, the Commercial Court heard yesterday. Mr Murtagh and two other businessmen are being pursued for €28.1 million by investors related to Polish property deals and all three have had total judgments for more than €60m entered against them.

The €60m sum includes a €28.1m judgment secured last month by Loparco, a Luxembourg registered company through which various investors invested some €20m in four Polish companies to be managed by the Howard Holdings property group.

Loparco claimed a €28.1m judgment last November after saying Greg Coughlan had failed to adhere to agreements relating to the investment.

Mr Coughlan, Mr Murtagh and Brian Madden had all guaranteed the performance by Mr Coughlan of his obligations and judgment for €28.1m was obtained against all three. That order increased to some €60m the total judgment orders entered against them, the EBS having just days earlier secured judgment for some €33m against them.

Loparco is now seeking to recover under its judgment and wants to establish the assets and liabilities of all three men.

Yesterday, Gary McCarthy, for Mr Murtagh, Dunheeda, Kingscourt, Co Cavan, referred to the insolvency of his client in reply to Mr Justice Peter Kelly when counsel sought more time to provide a sworn statement of the assets and liabilities of his client. Similar statements of affairs are sought from Mr Coughlan, Fastnet House, Ardbrack, Kinsale, Co Cork, and Mr Madden, Well Road, Douglas, Cork.

Mr Justice Kelly said he would allow until Tuesday next for the three to provide statements of affairs related to their personal assets and until Friday next to provide statements of affairs related to any assets in Howard Holdings.

Noting the statements of affairs should have been put in yesterday, the judge added he was suspicious that both Mr Coughlan and Mr Murtagh had just changed their legal teams and were now arguing this necessitated having more time to put in the statements of affairs.

There was an increasing tendency in the Commercial Court for defendants to change their lawyers when court orders were made against them and then to seek more time, he remarked.