Nama: Treasury must pay costs security

Nama will next week ask the Commercial Court to order insolvent developer Treasury Holdings to provide security for the costs of its forthcoming challenge to the agency’s decision to call in more than €1bn loans and appoint receivers over its properties here.

Cian Ferriter SC, for Nama, told Ms Justice Mary Finlay Geoghegan yesterday the agency is seeking security for costs from Treasury, but is not proceeding with seeking a fortified undertaking for damages from the company’s founders, John Ronan and Richard Barrett, should the case fail.

Security for costs is being sought in circumstances where the developer is insolvent with overall debt of €2.7bn. Nama acquired €1.7bn of its loans in 2010 and the loans called in by it amount to over €1bn.