McNamara ordered to pay €62.5m

PROPERTY magnate Bernard McNamara has been ordered by the Commercial Court to pay €62.5 million to creditors.

Having held a lofty position on Ireland’s rich list over a number of years, Mr McNamara now has debts of €1.5bn. Yesterday, on his 60th birthday, the Commercial Court registered a judgment for €62.5 million against the developer.

The court was told that McNamara would not be appealing a decision made against him in a case taken by a group of Davy investors. He was ordered to pay €62.5m following his personal guarantee of loans given by private investors for the €412m purchase of the Irish Glass Bottle (IGB) site at Ringsend.

McNamara has already said he cannot pay the €62.5m, plus €98m against his company, Donatex. This could now expose him to other claims by creditors. Companies belonging to him employ more than 1,100 people directly and indirectly.

Donatex’s only remaining asset is its share in the Ringsend site, which is said to be worth just €50m.

Bernard McNamara said he was personally exposed to the judgment, and was prepared to take the full consequences. Accordingly, he said he will be resigning his position with Michael McNamara & Co, building contractors. He was involved in a number of businesses which “contrary to some of the statements being made are not inter-linked”.

Michael McNamara & Co, which has 270 people directly employed, was “ring-fenced” from his other liabilities, he stressed.

“I will give a commitment to clear my debts in so far as I possibly can... Not everything here will be stressed forever,” he said.

He would personally take all the consequences for the debts and his “head will be on the plate”.

The summary judgment orders were granted by Mr Justice Peter Kelly after he was told by Martin Hayden SC, for Mr McNamara, his client was not proceeding with a Supreme Court appeal against the judge’s decision last month that the investors were entitled to summary judgment in the sums sought.

In those circumstances, John Gleeson SC, for the investors, sought and secured the summary judgment orders and also asked that the orders be drawn up as soon as possible. Costs were awarded against Mr McNamara.