TREASURY HOLDINGS’ legal challenge to a decision on Wednesday by the National Asset Management Agency to appoint receivers to a portfolio of property assets will be heard on February 21st.
The President of the High Court, Mr Justice Nicholas Kearns, yesterday set four days aside for the hearing.
In the meantime, David Hughes of PricewaterhouseCoopers and Luke Charleton of Ernst Young have been appointed as receivers
It is understood there is an agreement by the receivers not to take steps to sell assets before the case has been heard.
The legal proceedings were initiated this week by Treasury and 22 related companies after Nama told the company that it intended to appoint joint receivers to assets in Ireland to enforce its securities.
The assets include properties in Dublin such as the PwC head office in Spencer Dock, the Alto Vetro building on Barrow Street, and the Central Park office complex near Leopardstown, where Vodafone and Tullow Oil have bases.
After discussions between lawyers about the management of the proceedings, Michael Cush, senior counsel for Treasury, told Mr Justice Kearns the sides had agreed various terms and undertakings between themselves in a context where they wanted an early hearing.
The judge was also told by Mr Cush that the parties had agreed a timetable for the exchange of legal documents necessary for the hearing next month.
It had yet to be decided whether that would be a hearing of an interlocutory application (an injunction to apply pending the outcome of the full proceedings) or the full case, counsel said.
Treasury is also seeking leave to bring a judicial review to Nama’s actions.
It argues that the receivers’ appointment is unjustified, in breach of its right to fair procedures and makes no commercial sense.
Treasury claims the actions of Nama could have a domino effect within the group, threatening its survival in circumstances where it employs 300 people here and 100 outside Ireland.
It said discussions with two investors – Australian investment bank Macquarie and real estate investor Hines – were at a relatively advanced but sensitive stage.
Any attempts by Nama to move to an enforcement process on foot of demands issued on January 11th would have “catastrophic” consequences for Treasury’s business, it was argued.
Treasury has also alleged it had experienced “disappointing and seemingly inexplicable” decision-making by Nama concerning several matters, including the Battersea Power Station site in London.
An administrator was appointed to Battersea last month by Nama and Lloyds Bank.
The State, KBC Bank, Irish Bank Resolution Corporation (in its capacity as agent for a syndicate of banks which made loans to Treasury) and the joint receivers are all expected to be joined as notice parties to the case.
Nama moved on Wednesday to enforce repayment of Treasury’s loans to the agency.
It is understood Nama paid €900 million for loans with a face value of €2 billion but those figures are disputed by Treasury.
Counsel for Nama told the court yesterday that Treasury had given an “unequivocal” undertaking earlier this month not to bring a legal challenge to the appointment of receivers over several of its assets if the agency agreed to a two-week “standstill” period to allow the property developer an opportunity to secure an external investor.
Cian Ferriter, senior counsel for the agency, said he was instructed to put the point about the “standstill” agreement on the court record.
Mr Cush said his client did not agree but that issue would be determined in due course.
