Judge fast-tracks €50m Nama action against former AIB official

A former general manager of business banking with AIB is being pursued by a Nama company for judgments for more than €50m arising from unpaid loans, mostly issued for property development.

In one set of proceedings, National Assets Loan Management Ltd is suing Thomas Hopkins, Palmerston Park, Rathmines, and another businessman, Thomas Durcan, Terenure Road East, Terenure, both Dublin, for €43.5m and €37.2m respectively.

In a second action, Nalm is suing Mr Hopkins and his wife Mairead for sums of €2.84m and Stg£7.02m (€8.60m) arising from various facilities and guarantees. It is claimed those facilities were advance for purposes including to buy commercial property in west Sussex, to assist in purchase of an investment property in Rathgar, Dublin and to buy shares in AIB.

In the action against Mr Hopkins and Mr Durcan, Nama said the proceedings arise from loans advanced by Bank of Ireland and the former Anglo Irish Bank, now Irish Bank Resolution Corporation.

Those facilities were part of a portfolio of loans advanced to the defendants and others by AIB, Bank of Ireland and the former Anglo Irish Bank, all of which were acquired by Nama in 2010. Bank of Ireland was the lead participating institution in that portfolio, identified as the Hopkins connection, Nama says.

The facilities at issue were payable on demand and in any event were to expire by April 2011, Nama claims. It had issued these proceedings after a period of engagement with the defendants and their agents. One of the Bank of Ireland facilities was ostensibly advanced as a loan to which the Consumer Credit Act 1995 applied but that facility was not in fact advanced to the defendants in their capacity as consumers, Nama claims.

The loans were issued for a variety of commercial purposes, including to assist in buying lands for development at Bettystown, Co Meath and Bessboro, Terenure, and at Blackhall Place, Dublin 7.

Mr Justice Peter Kelly agreed to fast-track that case yesterday after rejecting arguments of delay advanced on behalf of Mr Hopkins who, the judge heard, accepted he was indebted to Nama but not to the extent claimed.

He was told Mr Durcan was consenting to transfer and is in advanced negotiations with Nama. His counsel Frank Crean said it was hoped the claim against his client would not ultimately trouble the court.

The judge also agreed to fast-track the proceedings against Mr and Mrs Hopkins after rejecting claims of delay by Nama. He said he was satisfied substantial points of defence had been raised and adjourned the matter to allow the sides exchange legal documents.