McNamara won't have to file assets in court

This is likely to be another case of Crony Elite skipping the queue at the expense of the taxpayer.

Did the DDDA have some involvment in this case or at least the site itself? Does the taxpayer get caught here again?

BTW…Any new news on the DDDA report which Gromley has?

From the article:

So the investors made some scurrilous statements accusing Mr McNamara of concealing assets; & rather than proving that these were false in open court & demanding that these statements were withdrawn; Mr McNamara thought it best to quickly & quietly settle the dispute. :angry:

So now anyone owed money by major developers knows the best route to getting their money back. :nin

Although we’ll take a hit on DDDA, it’s more the hit NAMA will take. The DDDA are unlikely to have recourse to McNamara’s other assets. I’m assuming that some of McNamara’s loans going to NAMA would have personal guarantees. These guarantees will be worth less if Davy’s bunch of cronies have sucked his wealth.

I’m not clear on the exact structure of the financing of the glass bottle site, but I think Davy’s investors were providing mezzanine finance. This would be subordinate to other bank loans. As this type of debt is more risky, the investors got a high interest rate, 16/17% IIRC. They were lucky to have a personal guarantee, though I think it may not have covered the whole investment amount.

My fear is that Fianna Fail’s reluctance to foreclosure on developers means that the taxpayer will recover less. It is frustrating to see Lochlainn Quinn, the former chairman of AIB, actively chase monies owed whilst AIB were in no rush to claim money from developers.