A LEGAL action is being brought against Treasury Holdings' co-founders, John Ronan and Richard Barrett, aimed at unwinding a controversial €20m transaction.
The liquidators of Treasury are seeking to join the company with NAMA in pursuing the Commercial Court action.
Earlier this year, NAMA brought proceedings against Treasury, as well as Mr Barrett and Mr Ronan, over a transaction in which €20m of shares were allegedly transferred out of the Treasury group to the benefit of the two men for €100,000 and for unsecured loan notes.
Since then, Treasury has been wound up and joint liquidators have been appointed. The liquidators now want Treasury to be a plaintiff, rather than a defendant, in the case.
If their application is granted, Treasury would be the 'enemy' of the defendants, rather than their ally, Mr Justice Peter Kelly observed.
The case was before the judge to address legal disclosure (discovery) issues but he agreed to adjourn those pending the outcome of the liquidators' application next week to change the status of Treasury in the case.
NAMA claims there was no commercially valid reason for the transaction, made in March 2010, when Treasury was either insolvent or in very difficult financial circumstances.