Two companies of developers Ray and Danny Grehan have initiated High Court proceedings challenging the appointment by NAMA of receivers to the Glenroyal Hotel and leisure centre in Co Kildare.
The proceedings by Glenkerrin Properties Ltd and Glenroyal Leisure Ltd have been taken against NAMA and accountants Paul McCann and Michael McAteer, who were appointed receivers last month.
The companies allege there is no lawful basis for the appointment of Mr McCann and Mr McAteer as receivers or receiver/managers of the Glenroyal Hotel and Leisure Centre and are seeking injunctions restraining them operating the businesses.
They claim the receivers appear to be contemplating selling the businesses but have not consulted at all with the directors of the companies about that.
It is also claimed Ray Grehan has been specifically excluded from property of the companies.
The companies claim there was no security over the businesses of the hotel and leisure centre permitting NAMA to appoint a statutory receiver or receiver/manager and say NAMA was so informed by solicitors for the companies on 3 May last.
It is claimed NAMA appointed the receivers to the hotel and leisure centre businesses in relation to security allegedly provided by the two companies to Allied Irish Banks under a mortgage deed of December 2002.
There was no power under that deed to appoint the receivers and their appointment is invalid, the companies claim.
The companies had sought undertakings from NAMA to stand down the receivers by 12 May 12 but NAMA declined to provide those undertakings.
A suggestion by solicitors for NAMA that the receivership was limited to secured property only and that the receivers or their agents were not running the hotel and leisure centre conflicts with the reality, the companies claim.
The case was mentioned today before Ms Justice Mary Laffoy when Mark Sanfey SC, for Glenkerrin, said he had just received an affidavit from NAMA and needed time to respond to that.
Paul Gallagher SC, the former Attorney General, represented NAMA while James Doherty represented the receivers.
Mr Sanfey said the sides had agreed to exchange legal documents and to adjourn the proceedings for mention on Tuesday next when a date will be sought for the hearing of the injunction application.
NAMA appointed Michael McAteer and Paul McCann as statutory receivers last month over assets owned by the Grehans and their companies following the Grehans' failure to meet terms for repayment to the agency of outstanding loans of €650m.
NAMA also secured approval from the High Court in London for the appointment of an administrator to take control of properties in the UK owned by the Grehans.
Just under half of Glenkerrin's assets are in the UK.
It has rental income of about €11m in the UK, a potentially valuable site in Canary Wharf, a shopping development in Ealing Broadway in west London, and the Crowne Plaza hotel in Shoreditch.
Glenkerrin's Irish assets include the site of the former veterinary college in Ballsbridge, the Grange apartments in Blackrock and the Glenroyal Hotel.