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Posts tagged ‘Commercial Court’

Sindo insinuates NAMA abused press complaint procedure to suppress freedom of press

By Nemawinelake,

Last week was a bad one for NAMA as it was revealed that an internal investigation by the Agency led to the uncovering of what was alleged to be a breach of its security with confidential details of loans being leaked by a former employee. NAMA has sued the employee, Enda Farrell and his wife Alice Kramer, it has also referred the matter to the Gardai and to the Data Protection Commissioner Billy Hawkes who incidentally is not commenting on the matter. NAMA is not commenting further on the matter saying it is sub judice and indeed it has been fast-tracked to the Commercial Court division of the High Court for hearing……………………….

full article at source:http://namawinelake.wordpress.com/2012/09/17/sindo-insinuates-nama-abused-press-complaint-procedure-to-suppress-freedom-of-press/

Receiver appointed over Quinn’s worldwide assets

By AMARY CAROLAN

“mesmerisingly complex” scheme devised by bankrupt businessman Seán Quinn and members of his family to put multi-million assets beyond the reach of the former Anglo Irish Bank and “to feather their own nests” is the largest and most devious seen to date in the Commercial Court, a judge said today.

Mr Justice Peter Kelly said he has presided over the Commercial Court since 2004 and regrettably was having to deal more often with cases involving “national and international fraud, sharp practice, chicanery and dishonesty”. However, he had never seen anything like the conduct in this case.

He made the remarks when granting an application by Irish Bank Resolution Corporation, formerly Anglo, for appointment of Declan Taite as receiver over the worldwide assets of various Quinn family members and over various foreign companies allegedly involved in the asset stripping scheme and based in Belize, Panama, Russia and United Arab Emirates. The Quinns consented to those orders.

full article at source:http://www.irishtimes.com/newspaper/breaking/2012/0725/breaking46.html

Paddy McKillen’s case against NAMA

By Namawinelake

There might be some raised eyebrows at the speed with which Paddy McKillen’s case against NAMA has been dealt with. To remind ourselves, here are the key milestones
1st July, 2010 – Paddy McKillen submits application to Ireland’s High Court for a judicial review of NAMA’s dealings with his loans
14th July, 2010 – Application made by the State (unopposed by the applicant) to have the matter transferred from the High Court to the Commercial Court
19th July 2010 – approval to transfer case from the High Court to the Commercial Court, case set down for 4 days in October, 2010
5th October, 2010 – the case opens at a special three-judge division of the High Court
14th October, 2010 – the hearing at the High Court concludes
1st November, 2010 – the judgment at the High Court is handed down – Paddy loses on all counts.
18th November, 2010 – terms of appeal to the Supreme Court decided by the High Court
15th December, 2010 – opening of appeal hearing at the Supreme Court
23rd December, 2010 – hearing of appeal at the Supreme Court concludes
3rd February, 2011 – judgment from the Supreme Court
But this was an important case to the financial well-being of the country as it threatened one of the government’s key planks in sorting out the financial crisis (and to remind ourselves they were the guarantee, NAMA, recapitalization and restructuring). If NAMA’s acquisition of loans (€71bn+ so far) is undermined then NAMA might face all sorts of challenges by developers unhappy with their treatment at the hands of the agency.
The Supreme Court has ruled on two of the five strands to the appeal and have determined that NAMA’s decision in December 2009 to absorb Paddy’s loans was not validly taken as it pre-dated NAMA’s coming into being on 21st December 2009. However it would appear that all NAMA need do is formally decide to absorb his loans. So not much of a victory for Paddy.
The other strand ruled on – whether the EU intended that NAMA only take non-performing loans – NAMA’s position was upheld, that is, that the agency is entitled to absorb both performing and non-performing loans.
The other three strands, consultation, fairness and constitutionality of absorbing Paddy’s loans have not been ruled on since the Supreme Court decided NAMA’s decision to absorb the loans was invalid. It is expected that NAMA will formalize now its decision to absorb Paddy’s loans in which case, the Supreme Court will then rule on the other three strands. Yes, it’s a little bizarre.
What next? A formal decision by NAMA to absorb Paddy’s loans. Then a judgment from the Supreme Court on the other three strands to the appeal. I would expect Paddy to lose but not as comprehensively as at the High Court. What then?  An appeal by Paddy beyond these shores to the European Court of Justice? Maybe, but more practically important is how NAMA will now act. Bizarrely the agency decided to refrain from absorbing Paddy’s loans pending the outcome of the Supreme Court appeal. Meanwhile there has been a flurry of activity with one of Paddy’s key assets on which there is substantial NAMA-eligible lending, the three luxury Maybourne hotels in London, Claridge’s, the Connaught and the Berkeley. The owners of Britain’s Telegraph newspaper have recently acquired 25% of the Maybourne group and are said to be about to acquire Derek Quinlan’s 35% interest in the group which would then give them a controlling interest. Paddy McKillen is reported to own 37% of the group and Kyran McLoughlin and others 3%. There are conflicting reports about the group’s €784m of debt with some suggestion that NAMA has extended the loans (through its control of NAMA banks pre-acquisition, one would guess) and other reports suggested the loans needed to be redeemed at the end of January 2011 (three days ago!).
Remember you will find extensive background (including dates, participants including representatives, witness statements etc) and detailed updates on this case under the dedicated tab, Paddy McKillen v NAMA.

source: http://wp.me/pNlCf-10C

comment:

Two and a half years after this mess blew up in our faces the ordinary home owners are left bewildered and out in the cold facing huge increases in their mortgage payments not everybody can avail of special treatment and this only enforces the notion one law for the rich and another for the poor

We urgently need a NAMA for the ordinary home owners .piling ever more taxes on the homeowners and expect the economy to grow is just plane stupid.

We cannot afford to bail out the private debts of the corrupt banks and expect the ordinary homeowners to put up and shut up.

What are the established political parties going to do about this ask them when they come to your doors?

Bank of Ireland (BoI) facts

Consider the following medley of Bank of Ireland (BoI) facts:
(a) On 19th February, 2011 BoI is required to pay a dividend to the National Pension Reserve Fund in respect of the NPRF’s residual holding of BoI preference shares. You’ll recall that in March 2009, the NPRF invested some €3.5bn in 8% yielding BoI preference shares. In May 2010, ~€1.7bn of the preference shares were converted to ordinary shares and the interest rate on the remaining ~€1.8bn went up to 10.25% per annum. That means that on 19th February, 2011 BoI needs to pay the NPRF interest on preference shares in the amount of €214m. Last year ordinary shares were paid to the NPRF in lieu of cash because the EU had apparently decreed that banks in receipt of state-aid couldn’t pay cash dividends.
(b) Just before Christmas, BoI secured permission from the Commercial Court division of the High Court to pay cash dividends from certain capital reserves.
(c) The EC decision on 15th July, 2010 approving BoI’s restructuring still hasn’t been published – at six months, the delay seems like a record.
(d) On 28th November, 2010 our handsomely-rewarded Financial Regulator published his new capital requirements for the four non-zombified Irish banks (AIB, BoI, EBS and ILP). BoI was to raise an additional €2,199m of capital by 28th February, 2011
(e) On 17th December, 2010 BoI announced the results of a debt swap which saw a contribution of €700m to its additional capital target. This meant that the target to be reached in February 2011 fell from €2,199m to €1.5bn. (company announcement here)
(f) In October, 2010 BoI needed pay a price of 5.9% interest per annum on a 3-year State-guaranteed €750m debt issuance.
(g) BoI’s share price today is €0.34 valuing the company at some €1.8bn.
(h) The estimated NAMA haircut on BoI’s loans was put at 42% by NAMA in September 2010 and 40% by the Minister for Finance in October, 2010. This haircut compares to 60% for AIB, 67% for Anglo, 70% for INBS and 60% for EBS. I have previously suggested on here that the BoI estimated haircut looks too low.
(i) The State already owns 36.5% of BoI through its conversion of preference shares in May 2010 and its receipt of ordinary shares in lieu of cash dividend (on the then 8% preference shares) in February 2010.
So where is BoI going to find €1.5bn (€2,199m capital requirement less €700m contribution from debt swap in December 2010) in the next 54 days? Un-announced asset sales? A new share issue? And what about the dividend it needs pay the NPRF on the preference shares? And what about the NAMA haircut?
It would seem from this distance at this vantage point that the only feasible investor will be our much put-upon pension reserve. And that will mean the State takes majority control of BoI – more than 65% by my calculations which are
Existing stake in BoI – 36.5% (5.3bn ordinary shares in issue * 36.5% = 1.9bn shares)
New share issue €1.5bn at €0.34 per share – 4.4bn shares
New share holding – (1.9bn + 4.4bn)/(5.3bn + 4.47bn) = 65.3%
And of course that is before the February 2011 dividend on preference shares and any additional NAMA-haircut-causing capital requirement. And the IMF has insisted on a bottom-up review of BoI’s non-NAMA loans and off balance sheet exposures by the end of March 2011. It is hard not to see from here how BoI will avoid a fate similar to AIB’s and may well end up on Enterprise Securities Market by the middle of this year.

source: http://namawinelake.wordpress.com/author/namawinelake/

Comment:

I have just one word

“Derivatives”  (off balance sheet exposures)

Bank of Ireland come clean!

Anglo official ‘warned of dire consequences’ of giving evidence

A FINANCIAL expert was warned of “dire consequences” for himself by an official of Anglo Irish Bank if he provided evidence for a businessman in proceedings alleging fraudulent misrepresentation and concealment by Anglo and another company relating to an investment fund for two hotels in New York, it has been claimed at the Commercial Court.

Anglo has denied the claims of intimidation of Tom Barry, a former head of corporate banking with Allied Irish Banks, made in proceedings brought against it by businessman Gerard McCaughey.

It is alleged an Anglo official told Mr Barry a substantial judgment obtained by the bank against him over property dealings he had in London was currently in the “bottom drawer” but, if Mr Barry submitted an expert witness statement for Mr McCaughey, it was likely the judgment would come out and Mr Barry’s name “would be appearing in the papers tomorrow”.

At the Commercial Court Mr Justice Peter Kelly described the claims as very serious. The judge said the alleged conduct was also arguably a contempt of court.

The judge has adjourned the proceedings to January 11th to allow Anglo and a named official respond to the matter.

Mr McCaughey, with addresses at Sandymount, Dublin and Manhattan Beach, California, is among 24 investors suing Anglo in relation to the hotels investment fund. His action is being treated as a test or “pathfinder” case.

In an affidavit, Thomas Norris, solicitor for Mr McCaughey, said the application for an extension arose because Mr Barry said late last month he would not submit the witness statement.

Mr Norris said Mr Barry was selected earlier this year as an expert and prepared an initial draft report at the end of March 2010.

However, on November 26th, Mr Barry said he was not willing to provide a witness statement.

Mr Barry apologised profusely but said he felt he had no choice, Mr Norris said. Mr Barry had said Anglo had obtained a substantial judgment against him over property dealings in London and, having made inquiries informally with people he knew in Anglo, was told submitting a witness statement and attending court would have “dire consequences” for him.

Mr Barry believed if he gave evidence there would be severe financial impact upon him and Anglo would proceed to enforce its judgment and also publicly seek to embarrass him, Mr Norris said. Mr Barry was finding the matter extremely difficult and stressful and Mr McCaughey had to find another expert and was also concerned Anglo may seek to influence other witnesses.

Anglo, in an affidavit by a senior manager, Con Tiernan, said the making of such serious allegations was wholly inappropriate and improper and no steps were set out to substantiate them. To the best of his knowledge no Anglo employee had engaged in such intimidation.

Mr Tiernan said Mr Barry contacted Donal O’Connor of Anglo last March to say he was considering acting as an expert witness for Mr McCaughey. A lending executive who had dealt with Mr Barry later informed him Anglo was continuing to pursue its action against him over loans held by him in the UK. It was made clear the acceptance by Mr Barry of any role in the McCaughey proceedings would have no bearing on the position being adopted by the bank in the proceedings against Mr Barry, Mr Tiernan said.

Mr McCaughey’s action is against Anglo and Mainland Ventures Corporation (MVC), Delaware-based and wholly owned by Anglo, over investments in the Anglo Irish New York Hotel Fund, a private equity investment in which 50 high net worth Irish based individuals invested an average $1 million (€763,000) each in 2006.

NAMA and Paddy McKillen

SIMON CARSWELL Finance Correspondent

VALUERS FOR the National Asset Management Agency (Nama) cut the valuation given by Anglo Irish Bank to four of Paddy McKillen’s prime US properties by 27 per cent but said that his five-star London hotels were worth 10 per cent more than the bank had assessed.

The properties valued included Anglo’s US head office at 265 Franklin Street in Boston. This was valued by the bank at $131 million (€93 million) compared with a final valuation of $95.6 million set by Nama.

Details of the valuations were provided in filings submitted by Nama in the High Court case taken against the agency by Mr McKillen, a property investor.

The hearing of the case finished yesterday before a three-judge division led by Mr Justice Nicholas Kearns, the president of the High Court. Judgment will be given on November 1st.

Anglo valued the five-star Claridge’s, Berkeley and Connaught hotels in London and properties linked to the Maybourne Hotel Group at £822 million (€934 million); the final valuation agreed by Nama was 10 per cent higher at £905 million.

A final value of £424.9 million was assigned to Claridge’s by Nama for the transfer of Anglo’s loans on the hotels to the agency. The Berkeley was valued at £246.4 million and the Connaught was valued at £183.6 million.

Two other properties associated with the hotels – one in Mayfair and the other in Knightsbridge, London – were valued at £28.8 million and £22.2 million respectively in final valuations set by Nama.

Full story here  http://www.irishtimes.com/newspaper/finance/2010/1015/1224281153988.html

Mean while again SIMON CARSWELL and MARY CAROLAN tells us

FORMER ANGLO Irish Bank chief executive David Drumm has filed for bankruptcy in the United States after the State-owned bank rejected his proposal to settle its legal action in the High Court in Dublin over loans of €8.5 million.

Mr Drumm applied for bankruptcy in a Boston court in Massachusetts near his US home at 3pm Irish time yesterday in advance of the bank’s case starting on October 26th.

Lawyers for Mr Drumm told the commercial division of the High Court in Dublin a short time later that Anglo had last Friday rejected a final settlement offer that he had proposed on September 24th.

He had offered to hand over all assets to Anglo excluding personal effects such as clothes and jewellery, his lawyers said.

Anglo’s counsel told the Dublin court that the US bankruptcy application was “quite an extraordinary turn of events” and that the bank had only just become aware of it.

Lawyers for Mr Drumm said he had “bent over backwards” to reach a settlement of the action. Counsel for Anglo said that it was “a bit rich” for Mr Drumm to seek to take the “high moral ground”.

It is understood that Mr Drumm claims that he proposed handing over assets to Anglo valued at €10.8 million to settle the action.

The 44-year-old former bank chief had offered to put up his €5.4 million pension, under which he is entitled to annual payments of €271,000 from the age of 55.

The assets on offer included half the proceeds – estimated at €1 million – from the sale of a house at Abington in Malahide, Co Dublin, and the transfer of another property in Cape Cod, Massachusetts.

He also offered to hand over €200,000 covering his half-share of a property in Boston which his wife bought from her own funds.

His lawyers had claimed in their September 24th settlement offer that he was “frustrated with the un-commercial stance being adopted by the bank in relation to his proposals”. Following his application, Mr Drumm may retain his €5.4 million pension and could emerge from bankruptcy within a much shorter period than in Ireland. An official appointed by the US court will now liquidate all his assets through forced sales in a move which may result in Anglo recovering a lower amount.

Under the shareholder agreement with the State-owned bank, Minister for Finance Brian Lenihan has control over the bank’s dealings on the loans with former directors.

It is understood that the Minister instructed the bank to take whatever action necessary to secure full repayment of the debts. Anglo’s lawyers claimed in correspondence last July that the Minister was aware of Mr Drumm’s attempts to settle.

It had been anticipated that Mr Drumm would use the hearing of the bank’s action later this month to meet voluntarily with gardaí and other investigators examining the collapse of Anglo, which is costing the State up to €34.3 billion.

Planning such a meeting was now “up in the air” following Mr Drumm’s bankruptcy application, said a well-placed source.

The High Court was told the US court action may or may not disrupt Anglo’s case but this was out of Mr Drumm’s hands, his lawyers said.

It is understood that Mr Drumm has had extensive contact with the Garda Bureau of Fraud Investigation and the Office of the Director of Corporate Enforcement about their investigations and in relation to planning a meeting with them. It is also understood that he has recently made contact with the Government’s commission of investigation, led by former senior Finnish civil servant Peter Nyberg, which is investigating the causes of the banking crisis.

Anglo’s case will be returned before Mr Justice Peter Kelly, who has been managing the case, in the Commercial Court next Tuesday.

source

http://www.irishtimes.com/newspaper/frontpage/2010/1015/1224281156871.html?via=mr

comment :

This is unbelievable stuff why are we even giving this guy the time of the day he should be brought back in handcuffs and forced to divulge all he knows about the fraud that went on in this toxic bank. This Pusey footing does not go on to the thousand of decent people that cannot pay their TV licenses and their ESB bills they are brought before the courts for the pittance the owe and yet we have this guy who was at the heart of this corrupt toxic bank that has cost us Billions and possible up to 50,000,000,000:00 billion trying to dictate terms.

We must see prosecutions and jail time been dispensed to all the crooks and no exceptions!

That is why we need a totally new kind of representive in the next Dail people who are not part of the in circle but ordinary people who know which side of the car  there petrol cap is on, people who know that our bills are going up and not going down as advocated by our politicians

People who know what it is like to struggle to pay their mortgages  in other words we need real people living on the same planet we the ordinary people have to live on and not the pampered planet our TD’s have been living on most of their lives

we need to overhall system ,its time for renewal and it can’t come soon enough

A word of warning, the politicians are contemplating ways to cling on to their plum jobs and perks by trying to extend the life of this corrupt and so out of touch government with this notion of a “national government” any such attempt to deprive the public of their democratic right to have a say in their own destiny as laid out in the Irish constitution will bring the public out on to the streets big time .We need a new political mandate to see us through the tough decisions that have to be made but it would be a major mistake to allow the very people and their cronies who caused this disaster to stay in power. Clear them all out and start afresh I say!

Paddy McKillen V NAMA

Fast-tracking of Nama case sought
MARY CAROLAN

The National Assets Management Agency (Nama) and the State will ask the Commercial Court next Monday to fast-track the first legal challenge to the agency by businessman Paddy McKillen and 14 of his companies over the proposed transfer of Nama of €80 million loans of the companies.

Mr McKillen claims the €80 million credit facilities from Bank of Ireland are “fully performing”, not impaired, there is no default on repayments, and transfer of the loans would have a “drastic and significantly detrimental” impact on his business and property rights.
He has also expressed “grave concern” about the impact internationally of transfer of the loans to the “toxic bank”, the implications for his companies abilities to raise additional facilities and the valuations placed on the loans by Nama.

For instance, Nama had obtained a Stg£725.9 million valuation from CBRE for assets on which a loan for the UK Maybourne Hotel Group was secured when he had last month obtained a valuation of Stg 994.78 million from Cushman & Wakefield Hospitality

Ltd, he said. He was concerned such valuations would drive down the realisable value of his companies property portfolio.

Mr McKillen said his companies had not purchased any Irish assets since 1998 “and hence have not engaged in speculative development”. His companies instead invested in “world class retail centres and other quality assets”.
source http://www.irishtimes.com/newspaper/breaking/2010/0714/breaking56.html

This is just the bigining of a long legeal battel and I suspect the Taxpayers of this country will again fut the bills
everybody involved will walk away with fat pay cheques except the poor taxpayers of Ireland

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