Private clients of Davy Stockbrokers are holding talks on whether to take proceedings under the Bankruptcy Act 1988 against developer Bernard McNamara.
McNamara personally owes €62.5m to investors who provided mezzanine finance for his stake in the €412m Irish Glass Bottle site and has already handed over a number of apartments to the investors in lieu of part of the debt. The Davy consortium is also considering taking security over shares in a number of assets held through McNamara's companies.
The Davy investors were given a full list of McNamara's assets earlier this year after it was agreed it would not be made public.
A spokesman for McNamara last week said the developer had no comment on the matter.
The investors who backed McNamara are said to include Glen Dimplex owner Martin Naughton, ESB chairman Lochlann Quinn, Riverdeep founder Barry O'Callaghan and senior Davy executives Kyran McLaughlin and Tony Garry. McNamara is suing the Dublin Docklands Development Authority for €108m, alleging it failed to deliver planning permission on the Irish Glass Bottle site.
It was reported last week that McNamara's art collection was seized by the Dublin city sheriff and will be sold to help pay some of his debts. That is unrelated to the Davy case. McNamara was one of the top 10 developers who submitted business plans to Nama in recent weeks.
Those business plans are now being reviewed and in September the loan management agency will take legal action against developers it believes to be insolvent and incapable of meeting their loan repayments.
More than half the business plans were rejected because they contained unrealistic assumptions. The status of McNamara's plan is unknown at this stage.