NAMA faces first battle on legality

NAMA faces first battle on legality Ireland’s National Asset Management Agency is facing its first legal challenge. Irish developer and investor Paddy McKillen has issued judicial review proceedings against NAMA, challenging the agency’s legality. A document circulated earlier this year by the EU Commission paved the way for claims such as this. It outlines how the bad bank’s powers potentially distort the rights of contract holders. McKillen, who owns the 340,000 sq ft Jervis shopping centre in Dublin, claims that the transfer of his loans from Bank of Ireland and Anglo Irish Bank to NAMA will have a negative effect on his business. A spokeswoman for McKillen said: “There is no justification in NAMA taking our loans. All our loans are fully performing against quality assets, with no land and developments. We are simply protecting our busi­ness.” NAMA refused to comment on the claims. Details of the legal action emerged as NAMA dramatically cut the estimate on the number of performing loans on which developers are paying interest. Some 25% of the €81bn (£68bn) of loans to be acquired by NAMA are performing, compared with its estimate of 40%. McKillen’s companies listed in the action are: Dellway Investments, Berkeley Properties, Metrospa, Maginotgrange, May Property Holdings, SCI 20 Place Vendome, Directdivide Trading, Submitquest, Forge Limited Partnership, Belfast Office Properties, Finbrook Investments, Connis Property Services, Formcrest Construction, Chesterfield (The Pavements) and Abbey Developments.