Nama firm pursues businessman for £9m at the Commercial Court

A company of the National Asset Management Agency is pursuing an Irish businessman at the Commercial Court for £9 million under a personal guarantee in relation to unpaid loans of £22 million made to a company.

Affidavits for National Asset Loan Management Ltd stated that Michael Breslin had, for the purposes of the guarantee, given an address at Barclay Drive, North Haven, New York, but his solicitors had indicated in correspondence he does not live there. He is domiciled in the US, it was stated.

Aillil O’Reilly, for Mr Breslin, said his client has a defence to the NALM claim and indicated there may be an application later concerning whether the Commercial Court has jurisdiction to deal with the matter. NALM had delayed more than six years in bringing the proceedings, he argued.

James Doherty, for NALM, said delay in bringing the proceedings arose because NALM was awaiting completion of sales by NALM-appointed receivers of properties at Waterloo Road, London, which sold for more than £15 million and the Bayside Shopping Centre, Dublin, sold for €3 million. Those sums went to reduce debts of Mr Breslin, it was stated.

Further delay arose as a result of trying to find Mr Breslin, counsel said.

Mr Justice Brian McGovern granted Mr Doherty’s application to admit the case to the Commercial Court and adjourned it to allow Mr Breslin’s side indicate the grounds of their defence and bring any motion contesting jurisdiction.

The case arises from loans advanced by the former Anglo Irish Bank in 2007 to a company, Car Park Solutions Ltd, with registered offices at Belturbet, Co Cavan. The loans were later transferred to Nama.

In its proceedings, NALM claims security for the facilities included guarantees of Michael Breslin and two other men. It also claims the terms of the guarantee meant the bank was not obliged, before making any demand or taking action against one guarantor, to make demand or take action against any other guarantor.

After the company failed to repay the facilities, NALM claims Michael Breslin became liable under his guarantee for payment of £9.04 million and it is seeking judgment in that sum.

In court documents, NALM said selectors for Mr Breslin had, in correspondence last February, referred to proceedings apparently issued by Mr Breslin in 2012 against Irish Bank Resolution Corporation for specific performance of an agreement. It was also stated an appearance had been entered by Nama in those proceedings, which were compromised and settled twice.

NALM had sought details of the settlement but had not received those and was instead told Nama was fully aware of all the documentary details of the compromise of the proceedings, it was stated.

NALM believed the proceedings being referred to must relate to loans or obligations retained by IBRC which never passed to Nama, it was stated.