Crosbie ‘failed to disclose assets’

Nama moved to enforce loans of €77m against businessman Harry Crosbie after he failed to disclose substantial assets to the agency when first asked to do so, the Commercial Court has heard.

A letter sent by solicitors for Nama in August 2012 said full and complete disclosure was a requirement of Nama’s January 2012 memorandum of understanding with Mr Crosbie and his “lack of candour” in dealings with Nama was “simply not acceptable”, especially when Mr Crosbie and related companies collectively owed Nama more than €420m.

Nama was terminating the memorandum, reserving all its rights, and wanted Mr Crosbie to take various steps, including resigning directorships of companies and sell various properties, the letter said.

Michael McDowell, for Mr Crosbie, argued Nama is now effectively seeking to bankrupt his client and is not entitled to summary judgment for €77m against him.

Nama is bound by an agreement set out in a letter of August 24, 2012, relating to management and disposal of assets and liabilities of Mr Crosbie and companies connected with him, counsel said. Nama obtained some €35m from the sale of assets under that agreement but was now seeking to resile from aspects of that agreement, he said.

The agreement is the basis for Mr Crosbie’s defence to the summary judgment claim and he is entitled to a full plenary hearing, Mr McDowell said.

Mr Crosbie also rejected claims by Nama he had misled it as to whether he had unencumbered assets, Mr McDowell said. It was clear Nama was trying to go after all assets of Mr Crosbie and his family despite its agreement, he added.

Paul Sreenan, for Nama, argued that the agreement does not constitute a defence to the claim for summary judgment and said Nama had never relinquished its entitlement to call in the loans.

Having heard both sides, Mr Justice David Keane reserved his decision on the agency’s application for summary judgment.

Nama appointed receivers in April 2013 on foot of an unmet demand for repayment under the loans and guarantees.

Earlier this year, it served a further demand on Mr Crosbie, seeking payment by March 17 of €77m.