Belfast Telegraph

IBRC pushes for enforcement

By John Mulligan

Irish Bank Resolution Corporation has asked a New York court to enforce a $7.8m (£5m) finding confirmed in its favour earlier this year by a US tribunal.

The arbitration ruling was made in favour of IBRC and its US subsidiary, Mainland Ventures, against Delaware-based Peninsula Real Estate Fund 1 GP, which is controlled by Timothy Haskin.

IBRC's predecessor, Anglo Irish Bank, Mainland and Peninsula entered into an agreement in 2006 to form a property investment fund that was in turn marketed to Irish investors.

About 50 Irish people invested an average $1m (£650,000) each in 2006 into the fund, which purchased two New York City hotels.

Anglo agreed to secure $50m (£32m) while Mr Haskin committed $750,000 (£490,000).

But the investment soured. Renovation costs for the two hotels spiralled from $32m (£20m) to about $100m (£64m) within the space of two years. Development of the hotels also halted amid planning issues.

Mr Haskin had also sued Anglo, seeking $75m (£49m) in damages from the bank, which he alleged had effectively vetoed an opportunity to refinance the hotel projects.

The case went to arbitration in 2010. It found some of Mr Haskin's conduct had amounted to "wilful misconduct" and that Anglo had not violated duty of trust. It agreed Anglo was liable for a $1.8m (£1.2m) capital call in 2009.

But it also ruled Peninsula had to pay $7.8m (£5m) to Anglo and Mainland Ventures for fees.

Belfast Telegraph

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