Nama wins orders against Grehans

NAMA has secured court orders enabling it to move against assets in Britain of developer brothers Ray and Danny Grehan as part of the agency’s efforts to recover unpaid loans of over €300 million.

Mr Justice Peter Kelly yesterday granted an application by Ciaran Lewis, for Nama, for European Enforcement Orders against both brothers. The application was made on an ex parte basis (one side only represented).

The orders allow Nama to apply to the courts of all EU member states in its efforts to execute judgments obtained in the Commercial Court.

Last month, both brothers consented to summary judgment orders totalling over €300m being entered against each of them at the Commercial Court in favour of Nama.

The orders arose mainly from guarantees provided over borrowings (mainly from AIB) of companies of the brothers but also included personal borrowings of €27m for Raymond Grehan and €22m for Danny Grehan.

Smaller judgment sums were sought in relation to two of the brothers’ property partnerships — the Ashford Partnership, which owns land in Co Wicklow, and The St Lohman’s Partnership, which owns land in Lucan, Co Dublin.

The effect of the orders was that summary judgment for about €312m was entered against Ray Grehan, of Bateman’s Row, Shoreditch, London, and about €307m against Danny Grehan, of Princes Park Parade, Hayes, in Middlesex.

The European Enforcement Orders granted yesterday relate to about €269.6m of the judgment entered against Ray Grehan and to about €264.8m of the judgment obtained against Danny Grehan.

The Grehans previously argued that AIB had loaned substantial monies on short-term facilities so as to avoid the due diligence required for formal loans and the totality of the relationship with the bank should be examined.

Nama had argued, because AIB had certified when transferring the relevant loans to it that they were short-term facilities, the Nama Act prohibited the Grehans making claims about their alleged understanding with that bank concerning repayment.

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