Nama publishes email to counter claims bidder was pushed out

Nama has published correspondence, which it says, counters claims that a potential buyer for its Northern Ireland loan portfolio was forced out of the process prematurely.

Independent TD Mick Wallace earlier claimed New York-based Fortress Capital, an under-bidder in the €1.6 billion sale of Project Eagle, was prevented from mounting a second bid for the loans.

In an interview on Newstalk radio, Mr Wallace said he was informed by Fortess’s managing director that Nama frustrated his company from increasing its bid for the portfolio in 2014 and that “when he wanted to bid more, he wasn’t allowed”.

The agency has, however, published an email from Fortress purporting to show it was unwilling to pay Nama’s minimum price, which was exceeded by another bidder, Cerberus.

The latter eventually bought the loans but a significant discount, resulting in a loss of around €222 million to the Irish taxpayer.

Nama said Fortress was only willing to buy the Eagle portfolio if the agency failed to get its minimum price from another bidder.

In the email circulated by Nama, Fortress boss Michael George said: "If you don't hit your reserve we'd like to continue discussions with you either for the whole thing or some subset of it…I think with a little more time I can get my Fortress people more comfortable."

Nama said there was no indication in the correspondence that Fortress was likely to be in a position to improve on the offer of £1.075 billion which it had submitted.

Therefore, Mr Wallace’s contention regarding the Fortress bid was untrue, it said.

A report by the Comptroller and Auditor General (C&AG), released earlier this week, raised a number of concerns about the sale, suggesting the agency departed from its normal loan sale process.

On foot of the issues raised, the Government now plans to establish a formal inquiry into the sale.