Owner of Kerry hotel and islands has ‘stateable defence’ to €175m claim, court told

A High Court judge has been urged not to grant judgment against an Irish-based Swiss-Lebanese investor who says he has a “statable defence” to the claim.

A California lending agent is pursuing Jacqui Safra through the Irish courts on foot of a US judgment it obtained in October 2022 for $192 million (€175 million).

Mr Safra, who is also known as Jacob E Safra, resides for periods on his private Garinish Island off Kenmare Bay and is the co-owner of Parknasilla Hotel and owner of Rossdohan Island.

The Dublin High Court heard MCG California LLC obtained the New York judgment after Mr Safra signed an affidavit admitting his debt, which arose out of a personal guarantee for 2018 loans to his company, Spring Mountain Vineyard Inc (SMV).

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On Friday, lawyers for Mr Safra said the lending agent’s motion for judgment should be dismissed, with costs awarded to their client. Ciaran Lewis SC said what was being requested from his client was “absolutely opaque”.

There were “clearly” issues between the parties that should be addressed at a full trial, he said. His clients should be entitled to argue their points at a plenary hearing.

Ms Justice Eileen Roberts reserved her decision on the application after hearing from both sides.

MCG, acting as administrative and collateral agent for various private lenders, is asking the High Court to recognise and enforce its $192 million judgment, plus interest, less payments received.

MCG said it received $32 million from the sale of Mr Safra’s winery business, which had in September 2022 filed a voluntary Chapter 11 petition, commencing a bankruptcy reorganisation.

The lending agent said it had “acute concerns” Mr Safra’s assets were reducing in a way not fully explained, while his three Irish assets had allegedly seen significant reductions in their fair market value.

The claims are denied, with lawyers for Mr Safra saying he had a “statable defence” to the case.