Date set for case against Nama

The challenge by troubled developer Treasury Holdings to the Nama decision calling in about €1bn of Treasury’s loans will be heard at the Commercial Court next month.

Date set for case against Nama

The legal costs of the case are expected to reach over €1m.

Ms Justice Mary Finlay Geoghegan yesterday fixed Jul 3 for the hearing of the judicial review challenge by Treasury against Nama, KBC Bank, and the Irish Bank Resolution Corporation, formerly Anglo Irish Bank. The two receivers appointed by Nama over various Treasury properties here are notice parties to the case.

Treasury, which the court previously heard is insolvent, last April agreed to provide a sum of €600,000 and charges over four properties in favour of Nama as security for the costs of the case, expected to amount to over €1m.

Security for costs was 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 it called in during Dec 2011 amount to over €1bn.

Ms Justice Finlay Geoghegan yesterday handed down a ruling on liability for the costs of the six-day hearing of the developer’s application for permission to bring that judicial review.

The judge ordered that if Treasury wins the ultimate case, Nama and KBC, which is owed €75m by Treasury and opposed the leave application, must pay half of Treasury’s costs of the leave application.

She also directed Treas-ury must pay the “reasonable” costs incurred by the State in defending the application for leave and for an injunction.

The State was entitled to costs of four days of the six-day hearing because Treasury did not pursue the injunction claims or other claims of unconstitutionality of provisions of the Nama Act, she said.

Given the withdrawal of those claims, the State was last April struck out as a respondent in the case.

Last March, Ms Justice Finlay Geoghegan granted leave to Treasury and 22 related companies to challenge the appointment of the receivers in judicial review proceedings.

She found Treasury had raised substantial issues for the court, including whether Nama breached its duty to notify Treasury of its decision of Dec 8, 2011, to enforce the loans.

In separate proceedings transferred to the Commercial Court this week, Nama is suing Treasury and its owners Richard Barrett and John Ronan in a bid to reverse a Mar 2010 transaction where €20m in shares were allegedly transferred out of the group to the benefit of Mr Barrett and Mr Ronan for €100,000 and unsecured loan notes.

Treasury has denied the transaction was invalid or improper.

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