Property developer opposes transfer of loans to NAMA

Lawyers for property developer Paddy McKillen have told the High Court that the aquisition of his loans by NAMA would have significant adverse affects on him, his business and his financial well-being.

A challenge by the embattled developer to the transfer of €80m worth of loans from Bank of Ireland to NAMA got underway today.

The State's legal team is being headed up the Attorney General Paul Gallagher, highlighting the serious threat this case poses to the agency.

In opening the case, lawyers for Mr McKillen outlined how they were not asking the Court to decide if NAMA was a good or bad idea or a good or efficient model to deal with the country's difficulties.

Instead Senior Counsel Michael Cush said they would be basing the case on five points - among them the procedures adopted by NAMA in its interpretation of the act.

Mr Cush also brought in the European Commission's approval of NAMA, saying that under a correct interpretation of its decision, at least some of a borrower's loans must be impaired before they can be acquired by NAMA.

He said the final point is that if he is wrong on these issues, the legislation for NAMA is so broad that it is unconstitutional.

In outlining details of McKillen's porfolio, Mr Cush explained how the income generated by his 62 properties was 1.7 times the sum required to meet interest repayments on the loans.

In these times he said, that was an excellent figure.

He added that it would not be in McKillen's nature to bring an action of this type at this time, were it not for his absolute conviction that he was treated unfairly.