Developer brothers get time to prepare defence in Nama case

DEVELOPER BROTHERS Ray and Danny Grehan have been given time to prepare their defence to an application by a National Asset Management Agency company for summary judgment orders of up to €270 million against them.

Mark Sanfey SC, for the brothers, told Mr Justice Peter Kelly yesterday the application had to be addressed in the context of the totality of the long-term relationship between Allied Irish Banks, his clients and their companies.

Counsel said he had sought documents in that regard, had got some but needed more.

He said AIB had lent substantial monies to his clients on short-term facilities in the knowledge they could not be repaid in the short term.

AIB wanted to lend on short terms so as to avoid the due diligence required for more formal loans, he said.

His clients were not saying they did not get the monies but believed the totality of the relationship had to be examined, he said.

Mr Justice Peter Kelly said he would allow time to address the issues raised and adjourned the matter to November.

The Nama claim arises mainly from guarantees provided over multimillion-euro borrowings of companies of the brothers but also includes personal borrowings of €27 million for Raymond Grehan and €22 million for Danny Grehan.

In its proceedings against Raymond Grehan, Crinnstown, Maynooth, Co Kildare, National Asset Loan Management Ltd is claiming summary judgment for about €270 million, comprising about €27 million arising from personal borrowings and the remainder, about €242 million, arising from guarantees over borrowings of companies, including some €195 million borrowings of Glenkerrin Homes.

In its proceedings against Danny Grehan, also Crinnstown, Maynooth, National Asset Loan Management Ltd is seeking summary judgment for about €265 million on foot of multiple loan agreements and multiple guarantees. The claim relates to about €22 million in personal borrowings and claims guarantees of company borrowings totalling about €242 million.

Proceedings have also been brought against two of the brothers’ property partnerships – The Ashford Partnership, which owns land in Co Wicklow, and The St Lohman’s Partnership, which owns land in Lucan, Co Dublin.