Politics

Wallace says Cerberus bankruptcy move agenda-driven

Independent TD says he will not be ‘silenced’ after High Court declares him bankrupt

Mick Wallace’s bankruptcy arises from a €2 million judgment obtained by a company owned by US fund giant Cerberus. Photograph: Alan Betson

Sarah Bardon
Tue Dec 20 2016 - 01:00

Independent TD Mick Wallace has alleged Cerberus moved to declare him bankrupt after he began to make allegations against the fund's role in the sale of Project Eagle.

Mr Wallace was declared bankrupt on Monday by the High Court arising from a €2 million judgment obtained by Promontoria (Aran) Ltd.

Promontoria is owned by US fund giant Cerberus, the fund at the centre of allegations made in the Dáil by Mr Wallace concerning the acquisition of Nama's €5.7 billion Northern Ireland portfolio.

Speaking to The Irish Times after the ruling, Mr Wallace said he believed their actions were driven by an agenda against him.

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Mr Wallace has made a number of allegations about the fund’s role in the sale of Northern Ireland’s loan portfolio, which has become known as Project Eagle.

Nama sold the loans to Cerberus for €1.6 billion in April 2014.

Claims

Mr Wallace has claimed in the Dáil that politicians and businesspeople were to benefit from the deal, prompting investigations by the Northern Ireland Assembly, the UK's national crime agency and the Republic's finance watchdog, the Comptroller and Auditor General.

The Wexford TD claims he is one of a handful of people the fund has moved against but he insists he will not be "silenced".

“I will continue to seek the truth, and this will not prevent me. I am not surprised this has happened,” he said. The Irish Times has contacted Cerberus for a response to Mr Wallace’s allegations.

Mr Wallace said he had no idea whether he will be able to retain his family home as part of the bankruptcy process.

He said he knew little about what he would be allowed to do or how much control he would retain over his personal finances.

However, he said he had stopped paying back his €2.1 million outstanding tax bill to Revenue.

Mr Wallace had pledged to use half of his Dáil salary to settle his debt but he said he had not made any payments in a number of months.

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