Treasury Holdings' legal bid over receivers for High Court

TREASURY HOLDINGS’ legal bid to overturn the National Assets Management Agency’s appointment of receivers to various assets owned by it here will proceed at the High Court later this month, it was confirmed yesterday.

Michael Cush SC, for Treasury, told Mr Justice Peter Kelly his side’s application for leave to bring a judicial review challenge to the actions of Nama, and for orders preventing the receivers acting pending the outcome of any challenge, is ready to proceed on February 21st.

The judge, who manages the Commercial Court list, noted this was High Court litigation but he had been asked to manage it prior to hearing. When he suggested the February 21st hearing should be a telescoped hearing, effectively meaning the leave application would be treated as the full judicial review hearing, so as to save time and costs, Mr Cush said Nama had not filed a statement of opposition in the full action as it was opposing the granting of leave.

Nama took the view, if it succeeded, that that could be the end of the matter, counsel indicated. If leave was granted, discovery would also be required. As Nama had previously indicated the approach it was adopting, the sides could not be ready for a full hearing on February 21st.

Paul Sreenan SC, for Nama, said if leave was refused, a statement of opposition would be unnecessary. If Treasury secured leave, Nama would address the issue of an expedited hearing of the full case.

In those circumstances, the judge approved a timetable agreed between the sides for the exchange of documents for the leave/injunction hearing on February 21st.

He also gave leave to Mr Cush to amend his side’s statement of grounds so Treasury may also seek leave to quash a decision of Nama of December 8th last to proceed with the appointment of receivers.

The proceedings by Treasury and 22 related companies arose after Nama indicated it intended to appoint receivers to assets of the companies in Ireland, including the PricewaterhouseCoopers head office in Spencer Dock, the Alto Vetro building on Barrow Street and the Central Park office complex near Leopardstown.

Treasury claims the actions of Nama could have a domino effect within the group, threatening its survival. Discussions with two investors were at a sensitive stage and attempts by Nama to move to an enforcement process on foot of demands issued last month would have “catastrophic” consequences for Treasury’s business.

The State, KBC Bank, Irish Bank Resolution Corporation (in its capacity as agent for a syndicate of banks that made loans to Treasury) and the joint receivers are notice parties to the case.