Cash rich developers to compete with NAMA and buy their own loans at discount

[MsAnneThrope]

The Tribune is reporting today that some of the country's "cash rich developers are putting together war chests and are planning to compete with NAMA when it tries to buy their debts from the bank"

The last time I heard the expression "war chest" it was Anglo Irish as it tried prop up its own share price through the famous Anglo 10 loans.

"Buying the loans, said a senior industry source, would effectively mean that the developers would take control of the properties at today's prices rather than ones agreed at the peak of the market".

Tom Parlon and the CIF just held a meeting where 150 developers "discussed their legal options in relation to NAMA"

Afterwards, one senior developer told the Sunday Tribune that he does not believe the agancy will be able to take control of the top 20 developers' loans before Christmas and predicted it will be this time next year before the process of transferring the loans to NAMA is completed

Does anyone detect the cherrypicking and resistance gaining momentum? In light of these moves has NAMA any chance of achieving its original goals?

[seabhcan]

NAMA should buy the loans and then sell them to the developers.

This sounds like a ploy to bid up the price of the loans and give a kickback to the banks.

[birthday]

If they compete with NAMA will that not push up price?
But how is it that they have cash if they owe money? Is paying back what you owe just for the little people.
Tom Parlon will no doubt be talking about the 'great value'-if ever there was someone who deserves his comeuppance it is Tom Parlon.

[FakeViking]

Tom Parlon: a parasite, a disgrace to this country. This a$$hole should sharing a cell in Mountjoy.

[DCon]

Tom Parlon: a parasite, a disgrace to this country. This a$$hole should sharing a cell in Mountjoy.

I can think of a great potential cellmate for him. Drinks in Fagan's, likes his GAA, tells lies and loses his memory a lot

[Emmet]

But how is it that they have cash if they owe money?

Exactly. I fail to see how this is arithmetically different from the banks simply agreeing to write off the difference between what the developer has in cash and the loan amount — a terrific deal for anyone who owes more money than they have in cash.

[DCon]

they have wads of cash. Choosing to not pay ones debts is not the same as not being able to pay ones debts.

I guess they do not want to bring their cash onshore.

[advertismo]

The debt is effectively sold to the taxpayer and a new loan is renegotiated in the developers' favour, if this comes to pass.
FG should be lobbied by the public to extricate ourselves from these liabilities before the Autumn election.

[MsAnneThrope]

I guess they do not want to bring their cash onshore.

[Anorakphobia]

Total bluff.
Most of these lads are broke and their loans wouldn't be going into NAMA if they weren't.

Derek Quinlan reported in papers today as owning a 100 million "holiday home" in South of France!
I know of a developer who is 100's of million in debt but still bets 20k a pop minimum.

This crap has gone far enough it is time for emergency powers to pursue people who are giving two fingers to the taxpayers of this country.
Living like kings while the taxpayer picks up their gambling tabs.