NAMA secures €100m deal with ex-Treasury Holdings developers
THE National Asset Management Agency (NAMA) has reached a settlement with the developers Johnny Ronan and Richard Barrett in a move that may see the bad bank gain up to €100m.
NAMA said it has agreed a deal with the two men over a pair of transactions that had been challenged by the agency.
NAMA and Mr Barrett and Mr Ronan's former company, Treasury Holdings, had taken court action against the two men after it emerged last year that certain units in Forterra Trust – which was formerly Treasury China Trust – were transferred in 2010 to Treasury Asian Investments Limited (TAIL). Mr Ronan and Mr Barrett held 50pc of TAIL each.
The shares had a nominal value of around €20m, but were sold for €100,000 and a loan note for the remaining balance.
NAMA had objected to the sale, alleging it was for "a significant undervalue" and was made with the intention of defrauding bank and/or other creditors of Treasury.
NAMA, which acquired €1bn of Treasury's €2.7bn loans in April and May 2011 after the disputed TAIL transaction, claimed at the time there was no commercially valid reason for that transaction.
Now though, if the resolution arrangements are approved by the High Court, NAMA said amounts owing to certain subsidiaries of Treasury will be paid in full and a surplus over the original price will be paid.
"NAMA and the Joint Official Liquidators are pleased to have resolved these matters and to report that, if approved, the arrangements will result in a considerable recovery to the creditors of Treasury and, ultimately, for the Irish taxpayer," the agency added.