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Treasury registers €900,000 judgment

NAMA-borrower Treasury Holdings could soon be almost €900,000 richer after registering a judgment against Balbriggan businessman Seamus Murphy.

The development company is pursuing Mr Murphy for costs arising from a lengthy legal battle over an agreement to develop a 125-acre tract of Co Louth land.

In April 2008, Treasury subsidiary Drocarne won a legal battle to force Mr Murphy to honour an agreement to let the site be developed.

The High Court agreed that Mr Murphy was not entitled to terminate the agreement and that Treasury could go ahead with the €125m development.

Treasury is now chasing Mr Murphy for €886,000 in legal costs stemming from the battle, and registered a judgment for that amount last week.

A judgment is one of the most advanced steps of debt enforcement, and legally compels the debtor to pay out.

A spokesman for Treasury declined to comment last night.

It is understood that the development company, which is one of Nama's 10 biggest clients, has no immediate plans to begin building on the Co Louth site.

The original plans, on the drawing board since late 2000, were for a "specialist retail" development as well as some housing.

The site was rezoned by Louth County Council in July 2004, but the development was delayed by the ensuing legal battle.

Given Nama's aim of getting developers to scale back their debt, the asset management agency would be very unlikely to fund such a project in a marginal area of the country like Louth.

Irish Independent