Treasury Holdings is insolvent and past the point of rescue - NAMA
Published 22/02/2012 | 15:45
PROPERTY firm Treasury Holdings is "insolvent" and past the point of commercial rescue, according to the National Asset Management Agency.
NAMA’s assessment of Treasury, which is owned by businessmen Richard Barrett and Johnny Ronan, is contained in affidavits submitted by the agency’s senior portfolio manager Mary Birmingham to the High Court.
Treasury is fighting NAMA’s attempt to have receivers appointed to some of its assets and a demand for the repayment of about €1bn in loans to the agency.
Ms Birmingham also said Treasury has overlooked the commercial reality of some of its loan facilities.
The appointment of receivers to some of the company’s assets would mean a better financial return for the State than continuing to fund the group, according to NAMA.
But Treasury claims NAMA's decision is irrational, disproportionate and an unfair exercise of its powers.
NAMA said it has supported the running of the company and has provided it with just over €100 million in funding over the past two years.
The agency acquired €1.7bn of Treasury loans and according to NAMA the majority of these are in default.
It also said Treasury also has very significant non-NAMA debt of around €1bn.
Treasury’s managing director Mr Barrett, claimed that the way NAMA terminated negotiations with investors and the company were at odds with the agency's own code of conduct and was improper behaviour for a public body.