An application by NAMA have two companies controlled by developers Raymond and Daniel Grehan wound up has commenced before the High Court.
NAMA has petitioned the court to have a liquidator appointed to Glenkerrin Properties Ltd, and Glenroyal Leisure Ltd on grounds including that both firms are insolvent and that it would be in the best interests of the firm's creditors that the companies are wound up.
In proceedings before Mr Justice Roderick Murphy today lawyers acting for the companies are opposing NAMA's application, and argue that the court should not make orders placing firms into liquidation.
Moving the petition to have Glenkerrin Properties Ltd wound up Paul Gallagher SC for NAMA said the company had advanced a number of grounds of objection to NAMA's application including that it (NAMA) would benefit disproportionally compared to other creditors of the company if the court were to appoint a liquidator.
Counsel said that NAMA rejected all the company's objections, some of which he said are "misconceived". The two firms counsel said were insolvent and it was "clearly beneficial to all" that a liquidator be appointed.
In relation to Glenkerrin Properties counsel said the firm had failed to satisfy a demand from NAMA for repayments totalling €4.754m made in April of this year.
Counsel said the demand arose mostly from a guarantee made between the company and AIB in December 2002, when bank made advances and gave credit to the brothers, who are both directors of the firm. The total amount recoverable on foot of that guarantee was €4.5m.
In addition in 2009 by agreement AIB loaned the company €254,000. Both the guarantee and the loan agreements were acquired by NAMA. Last May NAMA appointed receivers over property of which Glenkerrin Properties is the registered owner.
The company, with a registered address Maynooth Business Park, Co Kildare was set up in 1995 to carry on the businesses of owning and operating various properties such as hotels restaurant and bars.
Counsel said the company's directors Ray and Daniel Grehan who have addresses at Bateman's Row, Shoreditch, London and Princes Park Parade, Hayes Middlesex are each indebted to NAMA in sums exceeding €260m.
The case continues next week, when the court will hear both the company's objections to NAMA's application for a liquidator to be appointed, and NAMA's petition to have the second of the two companies Glenroyal Leisure Ltd wound up.