Nama seeks share of developer's future income - The Irish Times - Fri, Mar 30, 2012

STATE AGENCY Nama is pursuing former developer John Fleming through the British courts for a share of his income.

Mr Fleming’s property and development empire, Tivway, collapsed in 2010, owing its banks more than €1 billion, after the Irish Supreme Court shot down a rescue plan drawn up by an examiner appointed to the group in 2009.

He was declared bankrupt in Southend County Court in Essex, England, later that year. Last November, the same forum discharged him from bankruptcy.

This week, Nama applied to the British courts for an income purchase order against Mr Fleming. The case was adjourned for 10 weeks following a brief hearing.

An income purchase order would entitle Nama to any income earned by Mr Fleming for three years, above whatever level is deemed necessary for him to live.

Under the British system, bankrupts are generally discharged after 12 months. However, any creditor not involved in the original bankruptcy agreement can seek an income purchase order, once they make the application during the 12-month bankruptcy period.

Nama applied to the courts before Mr Fleming was discharged in November. This week’s hearing was adjourned to allow the agency to gather and assess information it needs to present its case.

Mr Fleming moved to England in 2010, shortly after the Supreme Court upheld an appeal by some creditors against a rescue plan proposed by George Maloney of Baker Tilly Ryan Glennon, who had been appointed examiner to the group in 2009. He applied for bankruptcy that November.

The settlement involved him handing over personal assets to creditors, including AIB and Anglo Irish Bank, that had secured judgments against him ranging from €15 million to €26 million. The assets handed over included his family home in west Cork, properties, investments and family trusts. He was allowed to keep two cars, clothes, valuables and cash of €49,000.

Mr Fleming’s business was based in Bandon. He began his construction business in 1975. The firm worked on projects across industry, energy and pharmaceuticals, and earned a strong reputation for the quality of its work.

It ran into trouble after it bought and began developing the Sandyford site, centred around a partially built 14-storey block, known as the Sentinel.

Tivway paid €245 million for the 11.3-acre site in Sandyford in early 2006, just as the property boom was reaching its peak. Three years later, the turnaround in the market that followed the financial crisis of 2008 forced Tivway to go to the High Court to seek protection from its creditors, and to have an examiner appointed.

Nama subsequently took over loans due to the Irish banks but was not a party to the bankruptcy agreement.

via irishtimes.com

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