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 Post subject: Re: Ronan pays debt to quit Nama
PostPosted: Sun Apr 05, 2015 5:24 pm 
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Joined: Apr 1, 2010
Posts: 10684
Inis Man wrote:
tommyt wrote:
Mantissa wrote:
It’ll be nice for him to be able to break out the toys again.

The Hummer was traded in yesterday


Wow! Are those tyres or property bubbles?

Those are over-inflated egos.

"Prediction is very difficult, especially about the future" – Niels Bohr

 Post subject: Re: Ronan pays debt to quit Nama
PostPosted: Sun Apr 05, 2015 5:35 pm 

Joined: Sep 29, 2010
Posts: 8718
Location: London, innit
Mikey wrote:
More on this here:

] ... 18721.html

THE maverick property developer Johnny Ronan has amassed a €300m war chest to build and develop prime real estates sites in Dublin and London.

more sober account in Saturday's Indo ... 17300.html

Then the crash came, and Treasury was one of many property firms that found themselves overstretched. After a protracted battle, Treasury ended up in receivership with debts of €2.7bn - about €1.7bn was owed to Nama alone. Unlike Mr Barrett, Mr Ronan's name was attached to numerous personal guarantees.

This meant it wasn't just Treasury's debts that were taken over by Nama. Mr Ronan was personally on the hook for loans worth close to €400m. Those personal debts were transferred into Nama as well and it's the remainder of these debts that were cleared this week when he emerged from the State bad bank.

This week's deal is fairly straightforward. Mr Ronan has raised €300m from the US investment firm Colony Capital and London-based M&G Investments. That money has been paid to Nama, clearing Mr Ronan's personal debts with the State bad bank.

In a statement announcing the deal, his Ronan Group Real Estate highlighted the fact that these loans had been repaid at par, meaning Nama and the State have not lost money on them.

That is true for his personal borrowings. For Treasury Holding's debts, it is a different story. Speaking last month, Grant Thornton's Michael McAteer, who is Treasury Holding's liquidator, estimated that Nama would receive about 12c in the euro on the residual debt from Treasury that stands at between €400m and €500m.

Even at the lower end of the scale, that would mean the taxpayer will be ultimately taking a hit of more than €350m on Treasury Holdings.

Now that Mr Ronan is clear of Nama, what happens next? Is it a case that he is debt free and away he goes? Not quite.

The developer has basically swapped creditors. Instead of owing Nama, he now owes Colony Capital and M&G. The funds that those two firms paid to Nama this week are secured against 24 properties in Dublin. If he can't keep to the terms he has agreed with his backers, those 24 properties will be on the line.

On the day Mr Ronan cleared Nama, it was rightly portrayed as a victory for him to be away from the stigma of being "in Nama".

That victory is not final though.

One need only look back to this time last year, when another US investor - Blackstone - bought loans tied to developer Michael O'Flynn from Nama at a steep discount.

At the time that deal was portrayed as a victory for Mr O'Flynn. Three months later Blackstone moved to take control of the business and remove Mr O'Flynn and his team. That row ended up in court and was only resolved this yea

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