Grehan brothers to each repay €300m

DEVELOPER brothers Ray and Danny Grehan have consented to summary judgment orders for over €300 million being entered against each of them in favour of NAMA.

The orders — for about €307m against Danny Grehan and about €312m against Ray Grehan — are the biggest ever obtained by NAMA against individuals and also represent the largest judgment sums entered to date at the Commercial Court against individuals under personal guarantees.

Mr Justice Peter Kelly entered judgment in those sums against both brothers yesterday after being told they were consenting.

Paul Gallagher, for NAMA, said the consent to judgment had been secured earlier yesterday.

The Grehans previously argued AIB had loaned substantial monies on short-term facilities in the knowledge they could not be repaid in the short term.

It was argued that AIB wanted to lend on short terms so as to avoid the due diligence required for more formal loans and the totality of the relationship with the bank should be examined.

Mr Justice Kelly had granted time to the brothers to make that case and other claims on affidavit.

In its submissions, NAMA had argued that because AIB had certified when transferring the relevant loans to NAMA that they were short-term facilities, the NAMA Act prohibited the Grehans making claims about their alleged understanding with AIB concerning repayment.

In its proceedings against Raymond Grehan, of Bateman’s Row, Shoreditch, London, National Asset Loan Management Ltd sought summary judgment for about €269m, comprising of about €27m arising from personal borrowings and about €242m, arising from guarantees over borrowings of companies, including €195m borrowings of Glenkerrin Homes.

In its proceedings against Danny Grehan, of Princes Park Parade, Hayes, Middlesex, National Asset Loan Management Ltd sought summary judgment for about €265m on foot of multiple loan agreements and multiple guarantees. The claim related to about €22m personal borrowings of Mr Grehan and guarantees of company borrowings totalling about €243m.

Proceedings were also brought against two of the brothers’ property partnerships, The Ashford Partnership and The St Lohman’s Partnership.

Arising from those claims, the judge entered summary judgment in additional sums of almost €43m each against both brothers.

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