The billionaire Getty family has entered into settlement talks in their High Court action against the operator of Punchestown Racecourse and related companies for the repayment of a €3.8 million loan given under the "passports for investment" scheme.
After over three hours of talks at the Commercial Court yesterday, Mr Justice Peter Kelly was told a number of matters had been resolved. However, until certain documents had been executed, the proceedings would not be settled, it was stated by Michael Cush SC, for GT Equinus, the Getty-owned vehicle.
Mr Cush said he would be able to tell the court today whether the case was fully settled. The US-based Gettys loaned the money to Punchestown in 1999 to help fund its redevelopment. Three members of the family - Jean-Paul, Aileen and Gail - were, it is understood, approved for Irish passports under the scheme.
GT Equinus later brought High Court proceedings in relation to the Punchestown investment transaction. GT Equinus is based in Reno, Nevada and had, it is claimed, acted as a vehicle to effect an investment in Blackhall Racing Company, the operator of Punchestown Racecourse.
It has taken its proceedings against Blackhall and three related defendants - Kildare Hunt Club Ltd, which owns all the issued ordinary shares in Blackhall, Punchestown Development Company Ltd and Punchestown Enterprises Ltd. The Kildare Hunt Club is the parent company of the latter two companies.
It is claimed that, on March 23rd, 1999, GT Equinus entered into an agreement with the defendants for the subscription by GT Equinus for three million redeemable preference shares for £1 each in Blackhall. GT Equinus contends it fulfilled all of its obligations under that subscription agreement under which, it is claimed, Blackhall agreed to redeem or repurchase the shares on the redemption date, March 23rd, 2006. An annual fixed dividend of 3 per cent per annum was to be paid on the shares - about £90,000.
It is claimed the defendants consented to judgment for the recovery of money due to GT Equinus if the shares were not redeemed or repurchased in accordance with the subscription agreement.
Blackhall and the other defendants had agreed that, if the shares were not purchased or redeemed at the redemption date, each of them would, at the request of GT Equinus, transfer certain lands in Co Kildare as consideration for the shares redemption.
However, it is claimed Blackhall failed to pay the agreed dividend on the shares from 2002 to 2006. In December 2005, Blackhall paid €150,000 which was credited to the alleged unpaid dividends.
It is claimed that Kildare Hunt Club, the Punchestown Development Company and Punchestown Enterprises Ltd failed to purchase the shares on the redemption date and some € 4.2 million is now owing.
In their defence and counterclaim, the defendants deny GT Equinus entered into an agreement as alleged or at all and also plead the alleged agreement is unlawful, void or unenforceable. It is claimed the defendants entered into a settlement agreement in November 2002 under which it was agreed Equinus would dispose of its entire holding of preference shares in Blackhall and the defendants would make payments to Equinus totalling €2.1 million.
