An action by NAMA to try to reverse a sale of Chinese property shares from Treasury Holdings to its directors has been admitted to the fast track commercial division of the High Court.
NAMA is seeking an order from the Commercial Court that the disposal by Treasury Holdings of 100 shares in a company called Daylasin Limited to Mr Barrett and Mr Ronan in 2010 is void.
The company is now called Treasury Asian Investments Limited
NAMA says the transfer of 100 shares for a payment of €100,000 was a substantial undervalue and has the effect of impairing NAMA's rights as Treasury's major creditor.
It says the market value of the shares at the time was more than €28m.
It says the shares were transferred to Johnny Ronan and Richard Barrett for €100,000 and an unsecured loan note of just over €20m repayable in 2020.
NAMA says the disposition of the shares involved the disposal of a valuable asset of Treasury at a significant undervalue.
It says it gave a significant and unwarranted benefit to Mr Ronan and Mr Barrett and was not in the best interests of Treasury or its creditors.
The agency also says it happened at a time when Treasury was insolvent or threatened with insolvency. Treasury's loans from Anglo Irish bank and AIB were transferred to NAMA shortly after the transaction was completed.
Treasury Holdings says the disposition of the shares was not illegal and was not contrary to the provisions of the NAMA Act.
Lawyers for Treasury told the court that a decision was taken in early 2010 to relist Treasury's Chinese property investment company on the Singapore Stock Exchange. It says it was advised that Treasury's shareholding in the company could have an adverse effect on its listing and for that reason its assets were transferred to a company ultimately owned by Johnny Ronan and Richard Barrett.
Senior Counsel Michael Collins said it was not the case that an asset was taken out of Treasury Holdings. He said Treasury had never accepted that there was anything wrong or improper about the transaction.
He also said that Treasury and NAMA had previously been close to an agreement on the issue. He said Treasury was willing to enter mediation on the matter. But lawyers for NAMA said they did not wish to go to mediation.
The case was adjourned until October.
