Declan Ganley has agreed to make arrangements to sell a pub and four acres of land in Galway for a total price not less than €189,250, as part of a nearly $20 million (€18.6 million) debt dispute in the US.
Jennifer G Schecter, a judge of the Supreme Court of New York, set out in an order published on Monday that Mr Ganley had agreed to a process by which he would sell the pub for at least €157,500, and the four acres of land for at least €35,250.
Mr Ganley would also arrange for the sale of two Mercedes-Benz cars, two Land Rovers and a Massey Ferguson tractor. He has already transferred €7,000 held by him in accounts in Ulster Bank and AIB.
The assets were the subject of a turnover order issued by Judge Schecter last year – literally, an order to turn them over – as part of Mr Ganley’s continuing dispute with his former friend and business partner David Shuman.
Mr Shuman secured a default judgment against Mr Ganley in New York in 2021 for $16.2 million, which he now claims has risen to nearly $20 million with interest and penalties.
The money raised from the sale of the land, pub and vehicles will go towards reducing the overall size of the judgment, the court order stipulates, minus the fees incurred by Tyrrell Insurances and Auctioneering, the Tuam-based estate agent handling the sale.
“I continue to make every effort to comply with the court’s order in this matter, even though this case has never been heard on its merits. This debt was fully satisfied years ago, as we will demonstrate. I have confidence that in the end, justice will prevail in the US courts,” Mr Ganley said through a spokesman.
Mr Ganley and Mr Shuman have been involved in a long-running dispute centring on a loan to Mr Ganley upon which Mr Shuman served as guarantor. The dispute has involved lawsuits in New York, Delaware and Texas.
In other arms of the litigation, Mr Shuman has been paid about $3.1 million as part of the dispute, and has forced Mr Ganley to auction shares in his telecommunications company Rivada Networks, which Mr Shuman subsequently bought.
[ New York court threatens to arrest Declan Ganley over failure to satisfy judgmentOpens in new window ]
Mr Ganley has also handed over control of two companies to Mr Shuman, a British entity called Ganley International Limited and a Swiss asset management company called St Columbanus.
‘It’s a fool who turns down money’
He disputes that he owes anything further to Mr Shuman, and in the current litigation in New York, Mr Ganley’s lawyer has told the court that his client would be issuing a motion containing “strong [and] competent evidence” that the judgment has already been fulfilled.
Mr Ganley was contacted for comment on this latest development in the litigation.
Mr Ganley has previously told The Irish Times: “As we will shortly show the court, this debt was paid years ago. Even after all this time, this case has never been heard on the merits. We have faith that ultimately the courts in America will see justice done in this case.”
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
