Treasury holdings lose Nama challenge

Added: 31-07-2012

Treasury Holdings has lost a Commercial Court challenge to Nama's decision to call in about one billion euros worth of loans and appoint receivers.

The property developers won on certain points of their case but lost out overall because they breached an agreement made with the state agency last January not to challenge the appointment of receivers.

Callside Developments - a subsidiary of Treasury Holdings - is behind the planned 80 million euro Wine Street Car Park Development in Sligo.

The court has found that Treasury Holdings had a right to be heard before Nama decided to enforce about a billion euros worth of loans last December.

Ms Justice Mary Finlay Geoghegan has concluded the state agency was in breach of its obligations to act fairly and reasonably in taking that decision without considering the fact there was investor interest in the loans.

However Treasury has lost out because it entered a 14 day standstill agreement with Nama last January not to oppose the appointment of receivers.

The judge has found Nama relied on that agreement to its detriment as the developers did go to court to challenge receivership and now she's ruled it would not be equitable for Treasury to benefit from that breach   so the developers lose the case.