THE NATIONAL Assets Management Agency will ask the Commercial Court next week to order insolvent developer Treasury Holdings to provide security for costs of its forthcoming challenge to the agency’s decision calling in loans or more than €1 billion and appointing receivers over its properties here.

Cian Ferriter SC, for Nama, told Ms Justice Mary Finlay Geoghegan yesterday that the agency was seeking security for costs from Treasury but was not proceeding with seeking a fortified undertaking for damages from the company’s founders, John Ronan and Richard Barrett, should the case fail.

Security for costs is being sought in circumstances where the developer is insolvent with overall debt of approximately €2.7 billion. Nama acquired some €1.7 billion of its loans in 2010 and the loans called in by it amount to over €1 billion.

Last month, the judge granted leave to Treasury and 22 related companies to challenge the appointment of the receivers in judicial review proceedings.

The case was before Ms Justice Finlay Geoghegan for mention yesterday to address a number of issues. She fixed Thursday next for the hearing of the security for costs application. She will also then address other matters relating to the substantive judicial review action, a date for which has yet to be fixed.

The judge added she would rule later on Treasury’s application for costs against Nama of the judicial review leave application heard last month. In opposing that costs application, Nama argued the appropriate order was for each side to pay its own costs on grounds including the court’s rejection of claims by Treasury that Nama acted in bad faith.

Under the Nama Act, the court has to measure the costs of the six-day leave application, expected to be very substantial.