Crosbie resists €77m bid by Nama

Businessman Harry Crosbie is resisting a bid by Nama to get €77m judgment orders against him arising from personal loans and his personal guarantees of the liabilities of two companies.

The agency, which in 2010 took over the AIB loans of Mr Crosbie and his companies, is not seeking judgment against Mr Crosbie concerning other sums due under a separate €353m facility for development of the Point Village. Recourse for the €353m is limited to assets provided as security, plus an additional personal recourse amount, it noted.

“Significant” sums realised from security granted by Mr Crosbie have been applied to reduce his debts under the Point Village loans, including €27m from sale of his shareholding in Amphitheatre Ireland Ltd, Nama said.

At the Commercial Court yesterday, Michael McDowell, counsel for Mr Crosbie, told Mr Justice Peter Kelly he would be opposing the application for the €77m summary judgment orders. Despite having “pocketed” €35m following an agreement concerning the sale of assets, Nama was now seeking to resile from aspects of that agreement, he argued.

In its action, Nama alleges it initially refrained from enforcement action over the debts of Mr Crosbie and connected companies — referred to as the Connection — and instead had in good faith worked with the Connection in its efforts to complete the Point Village and deal with the debts.

However, it alleged, there was a failure by Mr Crosbie to make full and frank disclosure concerning his assets and liabilities before the sides entered into a memorandum of understanding in early 2012. Nama said it was obliged to terminate the memorandum of understanding in August 2012.

Nama said it gave the Connection another opportunity after that date to reduce its debts through agreements for disposal of secured assets but became increasingly concerned about the effectiveness of Mr Crosbie’s day-to-day management of the assets. It appointed receivers in April 2013.

Mr Justice Kelly yesterday granted the application by Paul Sreenan, counsel for Nama, to transfer the proceedings to the Commercial Court’s list. He made directions for exchange of legal documents and fixed the summary judgment application for hearing on May 14.