Mansfield businesses put into receivership

THE Jim Mansfield empire is continuing to crumble after NAMA assigned a statutory receiver to a number of businesses linked to the high-profile developer.

NAMA has moved to appoint a receiver — believed to be KPMG — to facilities such as Weston Aerodrome, six apartment blocks beside the CityWest hotel in Dublin and Palmerstown House Estate in Co Kildare.

NAMA appointed the receiver after Mr Mansfield failed to agree a suitable business plan to pay off his debts to the state.

He is the third big-name developer put into receivership by NAMA in recent weeks, following similar moves against Paddy Kelly and Derek Quinlan.

The situation emerged on the same day as two international investment firms commenced legal challenges against the Government’s plans to buy back debt from subordinated bondholders in AIB at a significant discount.

The intention of the move is that subordinated debt holders will share in the capitalisation of AIB and reduce the burden on the taxpayer.

Last week, the High Court made a subordinated liability order under the Government’s bank restructuring law, the Credit Institutions (Stabilisation) Act 2010, which will enable it to change terms, conditions and maturity dates on certain subordinate debt instruments.

The orders were sought by Finance Minister Michael Noonan to ensure burden sharing by bondholders in the re-capitalisation of AIB.

Yesterday in the High Court, two bondholders, Abadi & Co, represented by Niall Buckley, and Aurelius Capital, represented by John Gordon, informed Mr Justice Kevin Feeney they had served motions aimed at overturning or varying the orders obtained by the minister.

The bondholder’s actions are against the minister, who was on notice of yesterday’s applications.

Under the 2010 Act, any bondholders or creditors of the bank are required to serve notice of any legal challenge within five working days of the making of the subordinate liability order.

Mr Justice Feeney adjourned both motions to the first week of May, for mention only, when the new legal term commences. The motions will go before the President of the High Court Mr Justice Nicholas Kearns, and it is hoped that the actions will be heard sometime the following week.

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