Court clarifies power of Nama-appointed receiver

The High Court has clarified the powers a Nama-appointed receiver has in regards to the assets of two commercial properties.

Mr Declan Taite was appointed as receiver to the Poppyfield Retail Park in Clonmel, Co Tipperary, and the City West Retail Park, Ballincollig, Co Cork, by the National Asset Management Agency in September 2012.

Prior to his appointment the National Asset Loan Management Ltd NALM, which is a company of Nama acquired loans advanced to businessmen John F Ronan, John Fraher, Richard Pratt and Sean White between 2003 and 2005 to buy the properties.

AIB sanctioned loans of €24.5m to build the Clonmel facility, and €17.5m in relation to the Cork property.

In a motion before the High Court, Mr Taite sought clarification in regards to his entitlements to receive arrears of rent due from tenants of the properties and to sell certain assets in order to reduce the obligations due to Nama.

In her ruling, Ms Justice Mary Laffoy said Mr Taite is entitled to appropriate certain assets in order to discharge the borrowers’ liability to Nama.

The receiver, the judge also ruled, is entitled to collect arrears of rent from tenants in the properties in order to discharge monies due by the borrowers.