Nama firm pursues businessman for €2.1m judgment

A company of the National Assets Management Agency is pursuing a Dublin businessman for a €2.1 million judgment.

It is alleged security for a €1.5m loan advanced by Irish Nationwide Building Society to James O'Shea included a mortgage over his interest in the Clonskeagh House pub in Clonskeagh, Dublin. National Assets Loan Management Ltd (NALM) claims the loan agreement was transferred to Nama in 2010 and is now being administered on its behalf by Capita Assets Services (Ireland) Ltd.

Mr O’Shea, Richview Villas, Clonskeagh, informed NALM in June 2011 that Clonskeagh House Ltd intended to surrender its lease over the pub and he was proposing to grant a new lease to another company, SouthLodge Inns Ltd, in which his wife and son were the shareholders, for a two year period, it is claimed.

NALM says it did not consent to that lease but was willing to give Mr O’Shea an opportunity to discharge his liabilities in an orderly manner. In that regard, it sought a business plan from Mr O’Shea and asked him to co-operate on various matters.

The firm claims there was extensive engagement with Mr O’Shea but alleges, despite an agreement to market the pub for sale and to co-operate with the Nama company, it became apparent he was not prepared to co-operate concerning the sale.

In January last, solicitors for Mr O’Shea wrote saying a new lease had been entered into with SouthLodge Inns but that lease was without notice or consent to NALM, it added.

Last April, the Nama company issued a demand for repayment of some €2.1 million due and owing on the loan and also appointed receivers over the secured property, it said. The receivers had to initiate court proceedings in an effort to get possession of the property and those proceedings were due to resume on November 14th next.

Mr Justice Brian McGovern agreed to fast-track the proceedings seeking judgment in the Commercial Court and adjourned the matter to allow Mr O’Shea file a replying affidavit. A solicitor for Mr O’Shea said he was contending the NALM application was premature given the existence of the other proceedings.

The judge noted Kieran Lewis, for the Nama firm, appeared “sceptical” as to whether there was a defence to summary judgment on the basis outlined but said he would adjourn this case to next month.