Friday, December 18, 2009
The Glass Bottle
The Commercial Court has ruled that developer Bernard McNamara must pay almost €63 million to a group of investors, who along with the Clare businessman, part funded the purchase of the Irish Glass Bottle Factory site at Ringsend in Dublin.
The court also granted the investors summary judgement of €98m against Donatex Limited, a company owned by Mr McNamara, in relation to the same deal.
However, a stay has been put on the decisions until January so that an affidavit can be prepared in relation to what was described as Mr McNamara's deteriorating financial circumstances.
The claim arose in relation to a 2007 guarantee given by Mr McNamara over a loan advanced by the investors, through their Jersey registered company, Ringsend Property Ltd, to help the financing of the purchase of the site.
It was bought that year for a record €412m. The site is now estimated to be worth in the region of €60m.
In an affidavit, Mr McNamara alleged that the investors behind Ringsend Property Ltd include well-known businessmen Lochlann Quinn, Martin Naughton, Kieran McLaughlin and Barry O'Callaghan.
The investment opportunity was described at the time as a transaction offering 'the opportunity of participating with one of the most prolific and successful developers in the country in the development of the largest and most high profile property to become available in Dublin 4 for decades.'
Ringsend Property Ltd is seeking the repayment of its loan, because it claims a key clause of the loan agreement had been breached.
Posted by Southofdub at 10:04 AM