Businessman challenges constitutionality of Nama

Lawyers for a businessman and 14 of his companies say their legal challenge to Nama is not a "full-frontal attack" on the agency.

Paddy McKilllen is challenging the constitutionality of the agency over the proposal to transfer €80m of his companies' loans to Nama.

Some €740m in loans on three five-star London hotels which are co-owned by Paddy McKillen, are earmarked to be moved to Nama.

Mr McKillen and his companies are however challenging the move, saying his credit facilities which were advanced by Bank of Ireland are fully performing.

His lawyers are claiming that certain aspects of the 2009 Nama Act are unconstitutional, although today they said the action was not a full frontal attack on the agency.

The High Court also heard of the Department of Finance's concerns that the application may undermine the building of confidence in international markets that Nama seeks to foster.

The court agreed to fast-track the application by having it transferred to the Commercial Court which is likely to hear the matter this October.