Treasury Holdings to appeal High Court ruling
TREASURY Holdings is to appeal against a decision of the High Court to reject its legal challenge against the National Asset Management Agency (NAMA).
It is challenging a decision by NAMA to appoint receivers to certain assets without consultation.
In a narrow victory for NAMA the judge said the agency designed to purge the banks of developer loans had not acted fairly before sending receivers to take control of property assets worth hundreds of millions.
However, Treasury Holdings had already signed away key rights when it made a “standstill agreement” with NAMA in January this year, the judge found.
Under that deal Treasury said it would not to oppose the appointment of receivers by NAMA, if the agency gave Treasury 14 days to find a new investor.
Despite handing victory in the case to NAMA Justice Mary Finlay Geoghegan said the state agency breached its obligations to act fairly and reasonably before taking the decision to send in receivers, and did not considering the fact there were investors willing to buy loans held by NAMA.
However, she ultimately found in favour of NAMA, because of the terms of the standstill agreement.