Investor who lost €36m unable to pay pub partner
AN INVESTOR who lost €36 million in the property collapse told a judge yesterday he was unable to pay anything to a former partner to whom he owed €1.2 million.
At an appeal hearing in the Circuit Civil Court in Dublin, Philip Mahon agreed that he was still collecting thousands of euro every month in rents but said it was all destined for banks who had loaned him millions.
He agreed with barrister Angus Buttanshaw that he owed former pub-sharing partner Dan Ryan €1.2 million but said he was unable to redirect money from rent collections to Mr Ryan – even to save himself from going to jail.
Mr Mahon (63), formerly of Kilmashogue Lane, Rathfarnham, Dublin, said if he diverted money from the banks to meet a €10,000 monthly court order in favour of Mr Ryan, the finance houses would put in a receiver and there would be nothing left for anyone. He said he had separated from his 58-year-old wife Margaret and was now living with a sister in Co Meath, where he owned properties in Navan and Kells. He also owned properties in Bundoran, Youghal and Dublin.
Mr Buttanshaw told Judge Alison Lindsay that Mr Ryan, of Stepaside Park, Stepaside, Co Dublin, had owned a share in Conway’s Pub opposite the Rotunda hospital in Dublin with Mr Mahon and Edward O’Donoghue.
Mr Ryan claimed a deal had been done behind his back and he had been left with nothing, eventually obtaining a judgment for the €1.2 million against Mr Mahon. In 2009 the District Court had granted Mr Ryan a €10,000 a month instalment order against Mr Mahon, which had not been paid.
Later the District Court had directed Mr Mahon spend three months in Mountjoy Prison on foot of his non-compliance with its order and Mr Mahon appealed that decision to yesterday’s sitting of the Circuit Civil Court. “I went from being a paper millionaire worth €20 million to owing the banks €16 million,” Mr Mahon told his counsel Conor Kearney. “I have not wilfully defaulted on the payments to Mr Ryan. I just don’t have the money.”
Mr Mahon told Mr Kearney he now lived on social welfare and was allowed by the banks to keep a small allowance from property rentals he collected and paid over to them. If he directed any of the rentals towards repaying Mr Ryan the banks would pounce on him and appoint a receiver. Either way Mr Ryan was going to get nothing.
He said he had to pay almost €1 million to the Criminal Assets Bureau over tax defaults and still owed them just short of €2 million.