KBC BANK’S application to have Treasury Holdings and 15 related companies wound up has been adjourned to later this month.
Lawyers for the bank told the High Court yesterday that it made a demand for the payment of €30 million on the developers and 15 related companies which it claims it is owed arising out of loans advanced for the development of the Spencer Dock project in Dublin.
Due to the firm’s alleged failure to satisfy the demand, the bank claims the firms are insolvent and unable to pay its dues.
KBC has petitioned the court to have Treasury and the related companies wound up and insolvency practitioner David Carson of Deloitte appointed as liquidator.
The companies, all with a registered address at Connaught House, 1 Burlington Road, Dublin, have opposed KBC’s applications on grounds including that Treasury is in talks to secure new investment to cover the loans.
As well as Treasury Holdings itself, KBC is further seeking to have related companies, including Spencer Dock National Convention Centre Hotel, Spencer Dock Development Company, Faxgore Ltd, Querida Ireland Holdings Ltd and Robheat Ltd, wound up.
At yesterday’s sitting of the High Court, Mr Justice John Hedigan agreed to adjourn the bank’s petition to the end of the month to allow for the exchange of affidavits and submissions between the parties.
The judge said the matter will go ahead on August 27th, subject to a judge being available to hear the case. The hearing is estimated to last for half a day. Nama will be a notice party to the application.
Lyndon MacCann SC, for KBC, said his client was part of a banking syndicate that extended loans of €270 million to Treasury Holdings and related firms for the development of Spencer Dock.
KBC, counsel said, provided 25 per cent of the total amount borrowed.
Counsel added that KBC was seeking recovery of what were “undoubtedly overdue loans”. However, the companies had sent replying affidavits late in the day which raised defences against the petitions including that there were new investors in the wings who were going to take out Treasury’s loans to the syndicate.
It is also argued the petitions are invalid as KBC is a minority party in the banking syndicate. The petitions could only be moved by the agent of the majority holder in the syndicate, it is also claimed.
Counsel said that KBC would be contesting these points which, he said, were “delaying tactics designed to frustrate our (KBC’s) legal entitlements”.
Counsel added that from the bank’s point of view, the concept that there was a “new investment proposal in the nebulous” had “no merit”. Counsel said that it was agreed that the matter could be adjourned to allow both sides fully prepare their respective cases.
Ross Gorman, for Treasury, said his clients disputed KBC’s summary to the court. Treasury is in talks aimed at securing new investment. It also argues that it is in all parties’ best interests, including the companies’ 300 employees, that the firms are not wound up.
Last month, the High Court dismissed Treasury Holdings’ challenge to Nama’s decision calling in more than €1 billion of its loans and appointing receivers over its properties here.
Ms Justice Mary Finlay Geoghegan found that a so-called standstill agreement between the two parties made in January – under which Treasury agreed not to take legal action against Nama – effectively ended Treasury’s right to seek a judicial review of Nama’s decision.
Treasury has indicated that it will appeal that ruling to the Supreme Court.
