McNamara ‘cannot put value on assets’

DEVELOPER Bernard McNamara will provide a sworn statement of his assets and liabilities to investors pursuing him for €62.5 million but it is “impossible” for him to outline the current value of his assets, the Commercial Court heard yesterday.

Mr McNamara is also not pursuing his effort to have the investors sign a “non-disclosure” agreement before releasing the information sought by them, his lawyer told Mr Justice Peter Kelly.

John Gordon, counsel for Mr McNamara, said his client had prepared the affidavit of means but had not sought a confidentiality agreement as legally understood. The idea of a non-disclosure agreement was to ensure “unnecessary material” wasn’t put into the media, he said.

The judge noted the investors had expressed concern such a non-disclosure agreement might affect their efforts to satisfy the judgment order they had obtained. He also noted the Constitution requires justice be administered in public and that all proceedings before the Commercial Court are public.

John Gleeson, counsel for the investors, said they do not accept that it is impossible for Mr McNamara to provide an estimated valuation of his assets and liabilities but the issue could be dealt with on another day.

Mr Gleeson said his side reserved their position on whether they would seek to cross-examine Mr McNamara about the contents of his affidavit.

On consent of Mr McNamara, the judge yesterday directed him to provide a sworn statement of his assets and liabilities, to include all properties in which he or his companies hold an interest. He must also provide details of all transfers of property or other assets to family members, connected parties or companies owned, controlled or associated with Mr McNamara, since November 2006.

Details of all projects being carried out by Michael McNamara and Company including the likely income stream such projects will generate, are also to be supplied, plus details of all the shareholdings held by Mr McNamara in various Michael McNamara companies.

The order requires Mr McNamara to provide a current value of his assets and liabilities, but Mr Gordon said the affidavit would provide an explanation about why it is impossible to do that. His side were consenting to provide the affidavit on the basis the other side understood that is what they would say on that issue.

Mr Gleeson repeated that his side was not at all accepting at the moment that it was impossible for Mr McNamara to provide the valuation sought.

The judge made the order and returned the case to March 8.

Mr McNamara said last month he has no unencumbered assets and is unable to pay the €62.5m.

The investors say they understand Mr McNamara has “extensive assets” held personally or through Irish companies and offshore companies, partnerships, joint ventures or other instruments.

The application by the investors, who include Martin Naughton, Lochlann Quinn and the Coolmore Stud, arises after Ringsend Property Ltd, a Jersey-registered company representing them, secured summary judgment last month for some €62.5m against Mr McNamara over failure by his company Donatex Ltd to repay loans advanced towards the €412m purchase of the Irish Glass Bottle site at Ringsend.