DEVELOPER DANNY GREHAN has followed the lead of his brother Ray and declared himself bankrupt in an English court – potentially making it more difficult for NAMA to pursue the €308 million he owes it.
Papers filed by Britain’s Insolvency Service show Grehan filed for bankrupcy on January 6 at the county court in Slough.
Grehan gave an address at Uxbridge in Middlesex, which he shares with his business Danny Grehan Project Management. His occupation is listed as ‘project manager’.
His former addresses include one at Crinstown in Maynooth, an address also given by Ray Grehan in his own separate filing.
Grehan and his brother Ray were behind the most expensive purchase of property on a per-acre basis during Ireland’s property boom: in 2005, they bought the former UCD Veterinary Hospital site in Ballsbridge for €171.5m – for a site slightly less than two acres.
Pursuing bankruptcy proceedings in the UK is preferential for fallen developers, as they can potentially emerge from bankruptcy within 12 months – as opposed to the 12 years that it may take in the Republic.
Grehan’s papers indicate that his bankruptcy will be automatically discharged on January 6, 2013 – a week after his brother’s similar status, filed at a court in London, is discharged.
The bankruptcy will require all of Grehan’s assets to be distributed among his creditors – which means NAMA will not necessarily be given priority over any other creditors he may have.
Like his brother, Danny is entitled to file for bankruptcy in the UK as that is where his “main interests” are based – the brothers have significant property interests in Britain and Northern Ireland.
The brothers were personally pursued by NAMA over the estimated €650m owed by their Glenkerrin Group to the state’s ‘bad bank’. NAMA won a €312m judgment against Ray Grehan, and a €308m judgment against Danny, last November.