US company sets sights on Kerry hotel and islands in legal battle with billionaire owner

The Parknasilla Hotel in Kerry, owned by Jacqui Safra, who is currently engaged in a legal battle with US company MCG California LLC. File picture

A US company has set its sights on the Co Kerry hotel and islands of a billionaire Swiss-Lebanese investor as it tries to enforce a $192m (€175m) judgment against him.

The High Court granted permission to MCG California LLC to serve proceedings on Jacqui Safra at his Parknasilla Hotel in Sneem.

MCG wants the court to enforce a judgment it obtained last October against Mr Safra from the New York Supreme Court for $192m plus interest, less payments received.

The sale of Mr Safra’s winery, called Spring Mountain Vineyard Inc, subsequently netted the California firm $32m, it says.

The judgment arose out of Mr Safra’s guarantee of 2018 loans to SMV from various lenders for whom MCG acts.

Following SMV’s repayment default in October 2021, MCG says, Mr Safra agreed to entry of a judgment against him by the US Court for the full amount owed. However, the lenders agreed to put a stay on remedies available to them until September 30, 2022.

On September 29, 2022, SMV voluntarily filed a petition commencing a bankruptcy re-organisation. MCG then filed papers to secure its judgment against him.

It says Mr Safra gave a personal financial statement last September that put his net worth at $510m. However, it does not accept he made a full or accurate disclosure of all of his assets.

It says the value of Mr Safra's assets fell by $81.2 million from last October to March, still leaving him with more than $1bn in assets. It says his cash on hand reduced by $1.675m in the first three months of this year.

MCG also claims Mr Safra has failed to explain the significant fall in the fair market value of his three Irish assets. It says the fair market value of his equity in Parknasilla Hotel has, according to his financial statements, fallen by almost $6m since last September, while Garnish and Rossdohan islands have fallen by $914,000 and $895,000 respectively.

It claims Mr Safra may also have art or furniture of “substantial value” in Ireland.

MCG wants the High Court to recognise the US judgment because Mr Safra has given his private Garnish Island, off Sneem, as his residence.

A private investigator has said it is impracticable to try to serve Mr Safra on the island, which he has owned for 20-25 years, as anyone who goes there without permission will be asked to leave.

Mr Justice Denis McDonald said it is “quite clear” there is a good case to be made that the US judgment is conclusive and final and MCG has “good, arguable grounds” for concluding Mr Safra is ordinarily resident here.

He made orders permitting Mr Safra to be served personally at his Kenmare hotel and at addresses in New York. The case will return to court next week.