A billionaire Swiss-Lebanese owner of a Co Kerry hotel and islands is contesting a High Court application seeking judgment for more than $192 million (€175 million) on behalf of private lenders.
MCG California LLC is asking the High Court to recognise and enforce a judgment it obtained from the New York supreme court in October 2022 against Jacqui Safra, who co-owns Parknasilla Hotel in Kenmare and resides on Garinish Island off Sneem.
The court heard Mr Safra, who also goes by Jacob E Safra, had signed an affidavit admitting his debt, which arose out of a personal guarantee for 2018 loans to his company, Spring Mountain Vineyard Inc (SMV).
Eoin McCullough SC, for MCG, told Dublin’s High Court on Thursday that interest on New York court judgments is set at a standard rate of nine per cent. The interest owed on Mr Safra’s debt has already exceeded $16 million, he added.
File being prepared for DPP over insider trading
Christmas tech for kids: great gift ideas with safety features for parental peace of mind
MenoPal app offers proactive support to women going through menopause
Ezviz RE4 Plus review: Efficient budget robot cleaner but can suffer from wanderlust under the wrong conditions
The California-based MCG, which acts as administrative and collateral agent for the various private lenders, did not initially exercise the remedies of enforcement available to it, he said.
Mr McCullough said the lending agent tried to accommodate Mr Safra and SMV by making a “series of allowances”.
However, after Mr Safra defaulted on a third forbearance agreement, his client used his affidavit of confession to obtain the $192 million judgment.
[ Swiss billionaire owner of Parknasilla Hotel being pursued for €175m US judgmentOpens in new window ]
SMV filed a voluntary Chapter 11 petition, commencing a bankruptcy reorganisation, in September 2022 in a move that “deprived” MCG from taking control of SMV’s property, counsel added. The sale of SMV netted $32 million for MCG, the court heard.
In legal papers, MCG says it has “acute concerns” Mr Safra’s assets are reducing in a manner not fully explained.
MCG does not accept Mr Safra fully disclosed all of his assets when he allegedly provided a personal financial statement in September 2022 that put his net worth at $510 million.
He has also “failed to provide explanations for the significant diminution” in the fair market value of his three Irish assets, the lending agent alleges.
The fair market value of his equity in Parknasilla Hotel has, according to Mr Safra’s financial statements, dropped by almost $6 million since September 2022, while his equity in Garinish and Rossdohan islands have seen reductions of $914,000 and $895,000 respectively, it claims.
MCG says it has seen documents showing that assets and valuables have recently been shipped to Ireland on Mr Safra’s behalf, suggesting there may be other items of art or furniture of “substantial value” in Ireland.
Lawyers for Mr Safra and SMV are due to make arguments against MCG’s application on Friday.
Find The Irish Times on WhatsApp and stay up to date.
