Property developer Sean Mulryan was prevented from reading a statement to the banking inquiry yesterday in response to a story in The Irish Times concerning a commercial dispute in the Czech Republic.
At the outset of his appearance in front of the inquiry yesterday afternoon, Mr Mulryan, founder of the Ballymore Group, sought permission to read the two-page statement.
The committee convened to discuss the request, but refused to allow Mr Mulryan read the statement, citing legal advice.
The statement sets out Mr Mulryan's position in relation to a row between Ballymore and Flow East, another Czech company which wanted to buy Ballymore's Savarin Palace property in Prague. Flow East is suing Ballymore for allegedly reneging on an agreement to hold exclusive talks for Flow East to buy the assets for €81.5 million. Flow East, which claims it was unfairly excluded from the Savarin Palace sale process, has also named Nama as a defendant in one lawsuits.
It has also asked Nama to reopen the bidding process, which was sold directly by Ballymore, although this request was denied. Mr Mulryan's statement said he was "amazed and annoyed" at the Irish Times story.
“It is becoming more frequent that a disgruntled underbidder in a property deal tries to use the media and mention of Nama to stop a transaction happening,” Mr Mulryan wrote.
He outlined 14 “facts” about the dispute with Flow East, which has said it would have paid the highest price for Savarin Palace. Mr Mulryan reiterated that Ballymore, not Nama, was the seller of the asset.
He outlined the Savarin tender process run for Ballymore by Cushman and Wakefield, adding that Flow East “gave no confirmation of proof of funding, which was a core requirement”. Mr Mulryan said Flow East was excluded from the bidding process for this reason and because it wanted exclusivity in the talks process.
“We are confident that the Czech courts will find in our favour ... and expose the claim for what it is – a disgruntled underbidder ... trying to inflict damage on Ballymore and Nama.”
