Request for NAMA injunction dismissed
Published 14/06/2011 | 05:00
The High Court has dismissed an application by two companies of developers Ray and Danny Grehan for an injunction preventing the National Assets Management Agency (NAMA) from appointing receivers to the Glenroyal Hotel and Leisure Centre in Co Kildare.
Glenkerrin Properties Ltd and Glenroyal Leisure Ltd brought proceedings against NAMA and accountants Paul McCann and Michael McAteer, who were appointed as receivers earlier this year.
The companies allege there is no lawful basis for the appointment of the receivers and sought injunctions, pending the final outcome of the action, restraining them operating the businesses.
In opposing the action, NAMA said it was entitled to make the appointments and rejected arguments made on behalf of the companies, which the court heard were "hopelessly insolvent".
In his judgment yesterday, judge Daniel O'Keeffe dismissed the application for an injunction.
Mr Justice O'Keeffe said he accepted NAMA's argument that an injunction shouldn't be granted on the grounds the companies had failed to provide the court with information in relation to their insolvency.
He said that there had been "nondisclosure to a material degree" of financial information in relation to the companies.
Such information, he said, was "necessary to assess the commercial and financial realities before any injunctive relief is made".
The judge made the matter returnable before the High Court later this month.