Results 10,721-10,740 of 27,945 for speaker:Michael McGrath

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Can you just clarify the group structure for me? So Chartered Land is 100% owned by yourself, and Castlethorn Construction you share with two co-investors. And then is there a parent company? And are they all sitting in the one group? Can you just explain the group structure, please?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: So no legal relationship between the two entities whatsoever? So there isn't a group structure around either entity?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Stand-alone company?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay, within the Castlethorn Group?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: And would you have formed a new corporate entity for each development, for example?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay. And ... and just to clarify the ... the total value of par debt attributable to your ownership interests, as you put it, was €2 billion at the end of September 2008. So is that 100% of the Chartered Land debt and your share of the Castlethorn debt?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Is that what it is?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay, and does it include personal borrowings as well then?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: It does. So the par value of what went across to NAMA which was attributable to you-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay, if you included the ... the ... the share of your co-investors in Castlethorn, it would have been somewhat higher then?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay. And when you say that €600 million has been paid back to NAMA, you're not talking about cash flow generated there which NAMA has kept from a rent roll, for example, you're talking about actual paying back of debt. Just to clarify.

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay, so about €400 million is ... is reducing the actual principal balance of the debt-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: -----and about 250 is cash flow generated-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: -----which would then be retained by NAMA by not offset against the loan balance. Okay and the €400 million is going against the €2 billion-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: -----not the greater amount which includes your co-investors. Just to clarify that. You dealt with a number of different banks. Chartered Land was heavily dependent on Anglo for 65% of its borrowings. Castlethorn to a lesser extent, 25%, I think Ulster, you say, was the lead lender to Castlethorn. What differences were there, in broad terms, between the different banks and their approach...

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay. And was their loan approval process as rigorous as the other banks?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: And how long typically would it have taken before you'd get approval in principle or ... or a ... a verbal assurance that the bank would be interested in supporting a project?

Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)

Michael McGrath: Okay, thank you. Thanks, Chair.

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Thank you very much, Chair. Ms Tinney, good afternoon. Can I, first of all, take you to Vol. 2, page 105, please, and it relates to the board deciding to increase the counterparty credit limits for the other Irish banks to €200 million? So this was in November of 2008.

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Sure, yes. Page 105-----