The National Asset Management Agency has told the Commercial Court it cannot be expected to engage in "endless debate" with Treasury Holdings before calling in its loans of €1 billion.

Lawyers for NAMA said Treasury was an insolvent debtor unable to continue trading without money from the agency.

Senior Counsel Paul Sreenan said NAMA had provided more than €100m working capital to Treasury after acquiring some €1.7bn of its overall €2.7bn debt and only called in the loans after a long process of engagement with Treasury.

Mr Sreenan said when NAMA decided to call in the loans late last year and appoint receivers in January, Treasury was continuously looking to NAMA for more money.

NAMA made the decision to enforce the loans in circumstances where Treasury was insolvent, dependent on NAMA for money to keep trading, had failed to provide a satisfactory strategy to deal with its creditors and where NAMA had considered and rejected "investment" proposals.

Mr Sreenan said additional information provided by Treasury in the period leading up to the calling in of the loans had increased NAMA's concerns about Treasury's strategy to deal with its creditors.

In its Commercial Court challenge to the calling in of its loans, Treasury was essentially arguing that the law required NAMA to tell Treasury that the agency was thinking of writing a letter to Treasury demanding money that Treasury admitted it owed to NAMA, counsel said.

Treasury Holdings is challenging NAMA's decision to call in its loans and appoint receivers over its properties.