Companies seek stay on €170m judgment against them

Three companies in the Dublin-based Moritz Group who have been sued by the National Assets Management Agency (Nama) over unpaid loans made by three banks have asked the High Court for three-month stay on a summary judgment of more than €170m being registered against them.

Nama originally sought summary judgment orders for €137.6m against Maplewood Developments, €95.3m against Moritz Holdings and €74.6m against Rumbold Builders over unpaid loans advanced by Allied Irish Banks, Bank of Ireland and Anglo Irish Bank (now the Irish Bank Resolution Corporation).

The proceedings arose after a Nama company, National Asset Loan management Ltd, acquired the various loans on dates from October to December 2010. The companies separately owe some €280m to Ulster Bank.

Today at the Commercial Court, the big business division of the High Court, Mr Justice Peter Charleton was informed the three companies had consented to a summary judgment being entered against them for more than €172.4m, but wanted a stay of three months.

They say the stay would help the save jobs within the group and allow the to realise and maximise the value of assets that would benefit both the companies and Nama. Nama has opposed the stay.

Eoin McCullough SC for Nama said it was agreed that orders in respect for summary judgment would be made for €70m in respect of Maplewood, €27.8m and €74.6m against Rumbold Builders.

All of the companies have registered offices at Firhouse, Dublin 24, and belong to the Moritz Group.

It was further agreed that judgment for the balance of the monies sought by Nama is to be determined at a full hearing at a later date of the agency's claim, counsel added. The only dispute between the parties was the application for a stay which Nama opposes, counsel added.

John Gleeson SC for the Moritz Group said his client fears the value of certain assets it plans to dispose of in an orderly fashion for the benefit of its creditors would be adversely affected unless a stay was granted.

If summary judgment is granted without a stay, counsel said, liquidators would be appointed over these assets, which would be sold off in a disorderly, unorganised fashion.

The hearing continues.