Cork pub owner seeks to prevent IBRC selling his loans to NAMA

A businessman and two companies who own or control several pubs in Cork employing 255 people have initiated proceedings aimed at preventing Irish Bank Resolution Corporation selling their loans to the National Assets Management Agency.

In an affidavit, Brendan McCabe said the bars have “a thriving trade” and turnover of €12 million a year but he is concerned IBRC is considering selling their loans to Nama prior to the hearing of his action against the former Anglo Irish Bank alleging overcharging of interest and the mis-selling of derivatives dating from 2006.

The bars are: Bodega at St Peter’s Market, on Cornmarket Street; Sin É, on Coburg Street; The Oval, on South Main Street; Crane Lane, on Phoenix Street; the Mutton Lane, and Arthur Mayne’s, on Pembroke Street.

Under derivative agreements, the aggregate amount of indebtedness of the two companies was about €18 million, said Mr McCabe. He had entered into a guarantee with IBRC personally securing the financial arrangements between the companies and the bank, he added.

He said he is in a position to offer the IBRC special liquidator Kieran Wallace a "reasonable" amount for the loans and he had secured finance from an Irish financial institution for that purpose.

The special liquidator’s refusal to discuss his refinancing proposals was “unreasonable” and “illogical”, he said.

While his solicitors had asked Mr Wallace to undertake that IBRC would not seek to sell the loans pending the determination of his side’s claims against it, there had been no such undertaking, he said.

Mr Justice Paul Gilligan granted liberty to Mr McCabe and his companies – Dagenham Yank and No One In Particular – to serve short notice of their injunction application on IBRC. The court is due to return to the matter today.

In his affidavit, Mr McCabe said he understood the IBRC Act 2013 restricts the courts’ ability to grant injunctions against IBRC. He said this was “unprecedented” and “wholly inconsistent” with his rights as a citizen before the court. He was also concerned by a restriction allowing Nama to ignore any equitable set-off which may arise in favour of any borrower.