Developer McCabe ordered to repay Nama €100m

WELL-KNOWN property developer John McCabe has been ordered to repay amounts totalling more than €100 million to the National Asset Management Agency arising mainly from loans to companies in his building group and personal guarantees of loans.

McCabe’s Builders (Dublin) was behind the so-called “millionaires’ row” development at Abington in Malahide, Co Dublin. He was also one of 10 customers of Anglo who each bought a 10 per cent stake in the bank in the so-called Maple 10 deal of 2008.

Nama also secured summary judgment yesterday in various sums against Mr McCabe’s wife and children related to various loans and guarantees. Judgment for about €31 million was entered against Mary McCabe; €36 million against her son John; €29 million each against her daughters Angela, Pauline and Sandra; and €18.3 million against her daughter Helen McCarthy.

Nama brought the proceedings in the Commercial Court following “disquiet” over events that last month led to it obtaining court orders freezing the assets of Mr McCabe, Rath Stud, Ashbourne, Co Meath, and his family.

Nama sought those orders after expressing concern that €6.2 million of assets that should have been ringfenced to pay off debts had been “misappropriated or dissipated”. It was claimed almost €5 million had been diverted into an account in the Middle East, while other money had been used to repay loans to a non-Nama bank.

The McCabes, whose group of companies owes Nama more than €235 million, had denied any wrongdoing.

Yesterday, Rossa Fanning, for Nama, asked Mr Justice Peter Kelly to enter summary judgment against Mr McCabe, his wife and children.

While the McCabe portfolio was being managed positively until last summer, Nama had since made discoveries causing it disquiet and leading to it seeking account-freezing orders, which were secured, Mr Fanning said.

No replying affidavits were provided by the McCabe side in that application, counsel added.

He secured orders from Mr Justice Kelly fast-tracking Nama’s actions against the McCabes arising from a series of loans and guarantees, most of which were advanced by the former Anglo Irish Bank. Others were advanced by Bank of Ireland and Allied Irish Banks. All the loans had been transferred to Nama.

The judge said he was satisfied to enter summary judgment in the sums sought and also granted orders meaning the judgments can be enforced across Europe.

Earlier, Bernard Dunleavy, for the McCabes, said that while they were not contesting the judgment order applications, they regretted the breakdown of relations with Nama and did not accept the allegations of bad faith.

The orders for €100 million against John McCabe snr include judgment for €88 million on loans from Bank of Ireland and Anglo Irish Bank, plus his personal guarantees of liabilities of his wife, son John, daughters Angela, Pauline and Sandra, and four companies in the McCabe group.

Demand for repayment of the loans was made by Nama last August. Accountant Kieran Wallace of KPMG was previously appointed liquidator of McCabe Builders (Dublin), after recruitment firm MCR Personnel applied to have the company wound up over an alleged unpaid debt.