TWO OF the State’s most ambitious developers, Johnny Ronan and Richard Barrett, will see the end of their globe-spanning company, Treasury Holdings, next week after conceding defeat in litigation taken by one of its banks.
Liquidators are expected to be appointed on Tuesday to the insolvent property business by the High Court after the company said it was no longer resisting an application by KBC Bank to have the company wound up over a debt of about €55 million. The rejection of a last-minute offer by US bank Morgan Stanley to buy the company’s debts from the State’s National Asset Management Agency (Nama), which supported KBC’s action, has led to the imminent failure of the group, sources close to the company said.
One of Nama’s top 10 debtors, Treasury has total debts of €2.7 billion, including more than €1 billion with the State loans agency.
(Laura Hutton/ Photocall Ireland)
Treasury were fighting this.
The Save Johnny Ronan campaign and (potential) rally kicks off below.
(Laura Hutton/Photocall Ireland)
TROUBLED IRISH property developer Treasury Holdings has begun legal proceedings against Nama. It is seeking substantial compensation and is contesting the constitutionality of the legislation governing its activities.
It is understood that Treasury, which is jointly controlled by businessmen Richard Barrett and Johnny Ronan (above), has made an application to the High Court on both matters.
This relates to Nama’s decision in January – first revealed by The Irish Times – to appoint joint receivers to certain assets secured against loans of more than €1 billion owed to the agency.
Last December, when Nama appointed Ernst Young as administrator, Treasury lost its 41 per cent stake in interest in the redevelopment of London’s Battersea Power Station in London and, along with it – the developer claims – a potential £400 million in management fees plus a fat share of Battersea’s £4.5 billion net profit over the next 15 years.
Does your heart bleed? Well, does it?
Treasury Begins Case Against Nama In High Court (Ciaran Hancock, Irish Times)
THE BOARD of Treasury Holdings approved the transfer of €20.5 million worth of shares in a related company to its owners Richard Barrett and Johnny Ronan in 2010 just before loans relating to the property developers were transferred to the National Asset Management Agency.
The details emerged in an affidavit submitted to the High Court by Mary Birmingham, a senior portfolio manager with Nama who has dealt with the Treasury loans.
Nama claims that in return for this transfer, Treasury received €100,000 and unsecured loan notes, with several conditions attached. Ms Birmingham says Nama opposed this share transfer and has sought – to date, without success – to have it reversed.
But why, NAMA? Why?
Nama claims Treasury is “hopelessly insolvent” with overall debts of €2.7 billion and “past the point of commercial rescue”.
In addition, Nama had provided €103 million over the past two years to support Treasury’s continued functioning.
Treasury transferred €20.5m shares before Nama took loans (Irish Times)
Everything stops for T.
THE NATIONAL Asset Management Agency is believed to have lined up a receiver to take control of assets at Treasury Holdings today if an agreement is not reached on the repayment of the developer’s loans by this afternoon.
Nama has set a 4pm deadline today for Treasury to repay its near €900 million loans to the state agency.
It is understood that accounting firm Ernst Young has been lined up by Nama to take charge of the assets involved if no arrangement has been reached with Treasury by the deadline.
Ernst Young was last month appointed by Lloyds Bank in the UK and Nama as administrator to Battersea Power Station in London, one of Treasury’s most prized assets.
Battersea will shortly be put up for sale.
Nama lines up receiver to control assets of Treasury (Irish Times)
If Treasury does not meet the deadline [to pay €900 million this month], Nama will move to appoint a receiver to certain properties in Ireland.
Treasury is jointly controlled by Irish businessmen Johnny Ronan (top, and, 2nd pic, with Bertie Ahern at the opening of the Convention Centre in 2010) and Richard Barrett (bottom pic right with Ronan and Brian Cowen at the Convention Centre opening).
Its portfolio of assets in Ireland includes the Spencer Dock development in Dublin’s Docklands and the Convention Centre Dublin, which was developed by Treasury and receives an annual subvention from the State.
The convention centre hosted a concert for Queen Elizabeth II on her historic state visit to the Republic last year.
Treasury also developed the luxury Ritz Carlton Hotel in Enniskerry, Co Wicklow.
The state loans agency appears to have lost patience with Treasury following many months of negotiations to agree a business plan and a term sheet for the loans.
Nama To Take Control Of Treasury Holdings Properties (Ciaran Hancock, Irish Times)