The National Asset Management Agency Act ("NAMA") came into operation in December 2009. However, in the 2 years since its formation what has NAMA accomplished and what tasks has it yet to complete? The first step faced by NAMA was in the valuation of the properties and loans assigned to it. This required the completion of extensive legal due diligence. Subsequent to this a review of borrowers' business plans was undertaken. The viability of each business plan is considered in the context of the quality of assets, the imposed strategy, the projected cashflows and/or potential income. Alongside these factors, the relevant obstacles were considered also such as tax, security, existing overheads and/or lack of cooperation by the borrower. It is clear that amicable relations between NAMA and the borrower helps speed along the various processes. The organisation recognises the specific skills of borrowers and sometimes seeks to incentivise their cooperation. In this context, borrowers can aid implementation by effectively managing their assets (e.g. obtaining vacant possession, efficient rent collection, seeking planning permission, completing developments, consolidating loans etc.). The outcome sought by NAMA is to forge a strategy which provides a fully supportive and structured workout of the present debt situation, enabling them to dispose of assets both consensually and forcibly.  After almost 2 years of hard work the final Memorandums of Understanding are being completed with NAMA borrowers and should be done and dusted by the end of the year.  Contact us if you want to know more about how NAMA operates and how you can engage with them.

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This publication is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Leman Solicitors for any action taken or not taken in reliance on the information set out in this publication. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this publication. Any and all information is subject to change.