Treasury Holdings has today received backing from the Irish high court to pursue its challenge against Ireland’s National Asset Management Agency.
The company is challenging Nama’s decision to appoint receivers to a number of its assets. It was also decided that Nama can bring an application to have Treasury provide security for costs and undertaking in relation to damages if it wishes.
Treasury had contested Nama’s decision to call in its loans in January, claiming two offers had been rejected from two international investors to take over the loans.
Nama claimed Treasury was insolvent and past the point of commercial rescue.
A Nama spokesman said: “The agency appointed receivers to certain assets owned by Treasury Holdings and a number of related companies because we believe that this is the course of action that is most likely to deliver the best financial return for the taxpayer. The receivers will remain in place pending the outcome of the judicial review.”
The court has now ruled that Treasury had raised substantial issues for the court’s determination, and granted the firm permission to proceed with its case.
A Treasury spokesman said: “We are pleased that the high court has found that we have raised ‘substantial’ legal issues concerning our treatment by Nama and has granted our application for leave to seek a judicial review.
“We note that the one of the grounds on which the judge made her order is that Nama failed to take into account the availability of investors/purchasers for the loans.
“A deal with such investors or purchasers is not only in our best interests; it will help economic recovery by allowing us to provide the type and quality of commercial accommodation necessary to satisfy the needs of job-creating foreign direct investment projects which continue to be attracted to Ireland.
“We are willing to engage with any proposal to secure the future of our company and its 400 employees. Any deal must satisfy the government, its agencies and the taxpayer, whose support over the last two years has helped us continue to operate and for which we are very grateful.”
The case will be heard again on 27 March.
joanna.bourke@estatesgazette.com
