US court action by Nama on Dunne land delayed

The National Asset Management Agency's attempt to enforce in a US court its interest in 67 acres of land at Celbridge, Co Kildare, owned by bankrupt developer Seán Dunne has been delayed until next month.

The State loans agency is seeking to take control of the land, now worth just €812,000 but carrying loans of €65 million, and is awaiting the approval of the US court where Mr Dunne filed for bankruptcy.

The US trustee managing Mr Dunne’s bankruptcy is awaiting the views of the official assignee, his counterpart in Ireland, where the Co Carlow developer has also been declared bankrupt, on whether the State agency has a valid lien on the property. The trustee is not objecting to Nama’s move.

The hearing of Nama's motion was yesterday put back until September 17th by the US bankruptcy court pending a response from the official assignee in the Irish bankruptcy court.

Development
Irish Nationwide Building Society lent the €65 million to O'Flynn Construction, which in turn lent the money to Mr Dunne, who was to develop the property at Oldtown, Celbridge, with O'Flynn. The development of the site did not proceed and Nama later acquired the loan.

Mr Dunne, who has debts of more than €700 million, filed for bankruptcy in the US in March.

Last month he was made bankrupt in Ireland as well after Ulster Bank, which is owed €164 million by the developer, sought a parallel bankruptcy given that all of his assets and liabilities were outside the US and predominantly in Ireland.