REO drops share listing to save money
TREASURY Holdings-linked property venture Real Estate Opportunities (REO) has dropped its stock market listing to save money and has delayed publishing its annual accounts until after a date set for a courtroom battle with the National Asset Management Agency (NAMA) .
Shares in the crisis-wracked company have been suspended since March as backers Johnny Ronan and Richard Barrett battle with state-controlled NAMA to keep their property empire afloat.
The wider Treasury Holdings group owes NAMA €1.7bn, and the bad bank has taken aggressive action against the property empire over the past six months in an effort to recoup some of the cash. It means many of REO's most valuable assets -- including the Battersea Power Station development in the UK and Ballymun Shopping Centre in Dublin are in receivership.
In a statement, REO said it has cancelled its stock market listing in order to "provide cost savings" and for greater "flexibility in providing general and financial updates" to investors. The shares were taken off the stock market on July 18.
The company had previously cancelled an Irish Stock Exchange listing and has since only been quoted on the little known Channel Islands Stock Exchange.
The delisting does not mean that the shares themselves are being cancelled or bought back by the company. Shareholders will still own the company and are likely to be able to trade their holdings on the grey market, though given the uncertainty hanging over the company volumes are likely to remain low.
In its final stock market announcement, REO said a "judicial review" hearing into NAMA's actions in appointing receivers to REO assets is due to be heard next month.
In a statement, REO said that, given the importance of the case to the future of the company, it will delay releasing its annual accounts for the year to the end of February until late August 2012.