The founder of the Master Meat Packers group, Mr Paschal Phelan, is claiming the group was worth up to £36 million (€45.7 million) in 1988 although his own sister had placed a value of £5.3 million on it just months earlier, the High Court was told yesterday.

Mr Dermot Gleeson SC, for beef baron Mr Larry Goodman, said values of between £3.6 million and £5.5 million were placed on the MMP group between 1987 and 1988, including a valuation of £5.3 million placed in October 1987 by Ms Ann Phelan.

He asked Mr Justice Murphy to compare these with a claim by Mr Phelan, made in his legal proceedings against his former partner in MMP, a Jordanian businessman, Mr Zakariah El Taher, and Mr Goodman, that the value of his 50 per cent stake in the group in 1988 was worth £9£18 million. That claim would put a value of up to £36 million on the MMP in 1988, counsel said.

Mr Gleeson said Mr Phelan was making this claim about the value of the group at a time when there was a progressive downward shift in the group's fortunes. In the first three months of 1988, the group was showing losses of some £646,000. Snapshots of the financial situation taken from documents including a report by accountants Coopers and Lybrand, showed a "blacker and blacker, or perhaps redder and redder position", through 1987 and 1988.

The court has heard Mr Phelan was paid £2.75 million for his shareholding in 1988.

Counsel was continuing submissions on the 27th day of the hearing of actions between Mr Phelan, Mr Goodman and others. The cases are expected to last several months. Both Mr Goodman and Mr Phelan were in court yesterday.

Mr Phelan has claimed Mr Goodman conspired to force him out of the beef processing industry by secretly controlling a 50 per cent stake in MMP. He claims that, without his knowledge, he was "sold out" by Mr Taher, his former partner in MMP. He is suing Mr Goodman for £30 million damages and interest.

For the purpose of the court proceedings, Mr Goodman accepts he owned and controlled MMP since 1987 but both he and Mr Taher deny any wrongdoing. Mr Taher alleges Mr Goodman acted to defraud and damage Mr Phelan with a view to eliminating MMP as competition to Goodman International or with a view to establishing a monopoly in the Irish beef industry.

The court has heard Mr Taher's shares in MMP were held by a Liechtenstein entity, Master Meats Anstalt (MMA) and these were allegedly sold in 1987 to another Liechtenstein entity, Tarsas Anstalt, belonging to Mr Goodman. Mr Phelan's 50 per cent shareholding was bought by Master Meats Anstalt in 1988.

During yesterday's hearing, Mr Gleeson referred to a memorandum dated March 5th, 1988, from Mr Martin Kelly, an accountant, to Mr Phelan. The subject of the memo was stated to be: "Omagh. . .solution to hole in accounts."

The hearing continues today.