Court directs Smart purchaser to furnish full asset statement

THREE businessmen, including Smart Telecom purchaser Brendan Murtagh, have agreed to provide full statements of their assets and liabilities to investors pursuing them for €28.1 million, arising from a property investment deal in Poland.

The three – Mr Murtagh, Dunheeda, Kingscourt, Co Cavan; Greg Coughlan, Fastnet House, Ardbrack, Kinsale, Co Cork; and Brian Madden, Well Road, Douglas, Cork – have to date had total judgment orders for more than €60 million entered against them.

Information available to the investors to date about the net worth of the three, all involved with development company Howard Holdings plc, appears to indicate that net worth has fallen significantly, Mr Justice Peter Kelly heard yesterday.

The judge said he was satisfied the investors had an incomplete picture concerning the defendants’ assets and were entitled to full statements backed up by documents. He also remarked the three appeared to have embarked on “a spree” of providing guarantees over substantial loans, with more than 25 guarantees involved, including a £10 million (€11.5 million) guarantee of an investment in Coventry airport, and several in favour of Anglo Irish Bank.

Earlier, Eileen Barrington, for the investors, said Mr Murtagh’s net worth, put at more than €200 million in February 2007, had been calculated by her side on the information available at about €3.5 million in January last.

In September 2008, the combined net worth of the defendants was put at about €118 million but, in April 2009, the combined net worth, insofar as it related to equity in developments or investments, showed assets of €4.5 million.

Mr Coughlan’s personal assets were set out in a manner demonstrating he had no equity in the assets held in his personal name, she said. The investors were “not at all confident” the information they had from searches relating to the defendants’ assets provided a “complete picture”, she added.

Mr Murtagh held shares valued at more that €30 million in building materials company Kingspan, but this did not appear on his April 2009 statement of assets. Perhaps this was because the shareholding was already charged, but details were provided of his shareholding in Smart Telecom, also subject to a charge, she said.

The matter was “urgent” as the EBS had secured a €33 million judgment against the three earlier this week over their failure to pay agreed instalments under an earlier settlement of proceedings over unpaid loans.

On consent of the defendants, Mr Justice Kelly directed them to provide statements of means and supporting documents within three weeks. If the investors are unhappy with the information provided, they may cross-examine the defendants about that in court on March 3rd and 4th next.

Mr Madden, representing himself, consented to the orders. Counsel for Mr Murtagh and Mr Coughlan also consented.