It seems that the chickens are finally coming home to roost at Treasury Holdings, the once mighty Dublin-based property development company founded by the colourful Johnny Ronan and understated Richard Barrett. Mary Carolan at the Irish Times is reporting that this morning in Dublin’s High Court, Treasury told the court that it was no longer resisting the bid by KBC bank to have the group wound up, and it is expected that liquidators will be appointed on Tuesday next 9th October 2012 when the matter returns to court. The putative liquidators are named as Grant Thornton who are expected to be appointed to liquidate 16 companies in the group.
On Tuesday next, judgment day is expected on the controversial sale of a group company to one of the founders, Richard Barrett in August 2012. There are concerns over the sale, the value of the company sold and the consideration received, and these are set to be addressed on Tuesday next in what promises to be a riveting day at the Four Courts. This morning, it was stated on behalf of Treasury that an affidavit had been provided and you can expect some robust examination of this next week.
What now for Treasury? Their employees, variously put at 45 to 300, may be affected though KBC has said that most of these are employed by the Ritz Carlton hotel and are not employees of Treasury itself. The betting on here is that the Treasury appeal of its failed judicial review bid with NAMA, will now be abandoned and NAMA might be breathing a deep sigh of relief on that one! Will the dynamic duo, Messrs Ronan and Barrett continue to have any role in Treasury? That’s not known but the Ray Burke response about receipts from the Bailey brothers might be apt here.
NAMA continues to be engaged in a wide range of legal disputes with several Treasury companies and also with Messrs Ronan and Barrett personally. So regardless of whatever transpires next week, you won’t have heard the end of the Treasury story for some time to come!
UPDATE: 9th October, 2012. As expected liquidators were appointed to Treasury and 16 group companies today. Michael McAteer and Paul McCann of Grant Thornton are the lucky pair who will need sort out the €2.7bn debts of the group, including €1.7bn apparently owed to NAMA. No word on jobs yet.
as the fellow once said ain’t that a ………….
The key trust document is found here,the important section is page 175,para c.
http://ir.treasurychinatrust.com/phoenix.zhtml?c=237568&p=irol-reportsArchives
“Under the Trust Deed, without prejudice to, and to the extent allowed under, the relevant laws,regulations and guidelines, the Trustee-Manager may be removed:
(i) if, at any time, the Trustee-Manager:
(a) is in material breach of the provisions of the Trust Deed and such breach is not resolved within 90 days of its occurrence to the satisfaction of the Unitholders;
(b) has been convicted of, or has entered into a plea bargain or settlement admitting guilt for a crime, such conviction, plea or settlement being demonstrably and materially injurious to
TCT; or
(c) is insolvent or under judicial management; or
Looks like with the demise of Treasury its going to be a martini lunch..
The really lost for words here i suppose “SALE” is a good as description as any of the subs to Barrett,prevented this clause from getting triggered.
Cant wait for the explanation on Tuesday,few sleepless nights ahead for the Two Irish accounting firms that provide valuations which would appear to be DRAMATICALLY different that the GS view.
About four years after it should have happened. Most employees get one weeks notice. Four years notice our more colourful elite. Some republic.
Glenda Gilson must have written the script. From the moment he flew to Marrakech with former Ms world at our expense I was praying this day would arrive.
>Implying that the pair won’t in fact fly off to the UK for a quick bankruptcy.
Apologies to NWL for all the video music links but….how to turn a 450 million company into a 250 million one,seriously gotta love all the corporate announcements…….what does NAMA do next.Caught btw a rock and a hard place huh!
If they unwind the most recent transactions,GS valuation reported above 30 million,Barrett PP,paper again at around couple million I think.What then….looks like the Forum put option triggered,impacting TAIL,is the tail wagging the dog here ?
“Furthermore the Board wishes to advise that in regard to the previous announcement of 26 April 2012 regarding a plenary summons issued by the National Asset Management Agency of Ireland (“NAMA”) against Richard Barrett, John Ronan and Treasury Holdings in relation to Treasury Asian Investments Limited (“TAIL”), Treasury Holdings has advised the Board that this matter is next before the High Court of Ireland on 22 October 2012 for the determination of certain procedural matters. This summons relates to an interest of approximately 9.8% in TCT held by TAIL, which was acquired by TAIL from three wholly-owned subsidiaries of Treasury Holdings in March 2010.”
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTU2NDYzfENoaWxkSUQ9LTF8VHlwZT0z&t=1
Acquired now there’s a lovely eupharism…..how was it acquired again,ah yes cash….nah some note.
Anyway,more to follow but in the meantime as its Taco Tuesday in my local dive bar and i have had a few to celebrate,given the demise today of Tresaury…nothing lasts forever…..
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTU2NDYzfENoaWxkSUQ9LTF8VHlwZT0z&t=1
Lovely little paper here by ” Kha Loon is head of the Standards and Financial Market Integrity division of CFA Institute for the Asia-Pacific region, leading the effort to promote high standards of professional conduct and financial market integrity in the region”
Appears the antics of our own dynamic duo has caught his attention,Barrett in some recent interview,suggested that the transfer of the subs was done to protect the hundreds or was it thousands of Irish unit-holders,no seriously he said that,really.
Anyway,this eminent expert from the Financial Market Integrity division has basically put a health warning on TCT, caveat emptor. May be time to head for the exits salvage what you can as a unit holder.
The paper is well worth a read,few highlights….could this be the final nail in that coffin……
“Good governance and transparency is put to the test in such a situation, and investors should take note of ongoing developments at TCT. First, THRE removed its three independent directors on 25 July. The removed independent directors claimed that TCT had been slow in releasing information on legal action facing TH in Ireland.
In a 26 July press release, TCT announced that four new independent directors had been appointed. THRE now has a total of seven directors and has met the regulatory requirements to have a majority of independent directors on the trustee-manager board. There is one caveat though. The vice chairman and lead independent director have received consultancy fees from TCT over the past three years and, therefore, do not qualify to be an independent non-executive director (INED) under business trust regulations. There is, however, a loophole in the business trust regulations on regulation number three. If the THRE board is satisfied that the director can exercise independent judgment and ability to act with regard to the interests of all unitholders, he can be designated as an independent director.
Second, the sale of THRE and THPM were valued by two accounting firms, and the transfer price of €2.263 million was based on the higher of the two assessments. In 2011 the two companies received €15.7 million in fees from TCT, a related-party transaction. If TCT was listed as a REIT or a listed company under SGX listing rules, the rules on related-party transaction would have applied to the sale of these two assets to Oriental. This sale would have required disclosure of the firms that conducted the valuation and required shareholder approval.”
http://blogs.cfainstitute.org/marketintegrity/2012/10/03/treasury-china-trust-governance-clouds-value/
NAMA,TCT is ringfenced,yeah ringfenced I hear you David.
Recent interview with this chap.
“David Gerald is the President and CEO of Securities Investors Association (Singapore) or SIAS.”
http://financialeducationsummit.org/2007/speakerinfo.php?profile=gerald
Here is the video quite funny actually,if you not a unitholder that is.
http://video.xin.msn.com/watch/video/tct-comes-clean/pfxj89d5
Going to actually remove myself from TCT email alerts,it’s bordering on spam the sheer volume of announcements.
Well thanks Richard and all that……deck chairs the band playing on.
“The Board of Treasury Holdings Real Estate Pte Ltd (“THRE”), the trustee-manager (the “Trustee- Manager”) of Treasury China Trust (“TCT”), wishes to advise that Mr Graham Sugden, an Independent Non-Executive Director of the Board since 21 May 2012, was unanimously appointed as Chairman of the Board. Mr Sugden’s appointment will take effect on Monday 15 October 2012. Mr Richard Barrett who is the existing non-Executive Chairman, will step down and remain on the Board as a Non-Executive Director.”
http://ir.treasurychinatrust.com/phoenix.zhtml?c=237568&p=irol-IRHome
Feel like I’m flogging a dead horse with this…but yep another TCT announcement today.
This one related to Forum-you know Enda Farrell’s last gig.
He has been accused of sending Forum,Irish state secrets,they have underwater convertible bonds outstanding with TCT.
They had a 30 day window to pull the trigger on the put option,it appears to have closed.
However,they may have other options to put the bonds back to TCT.
“As previously announced on 3 September 2012, should the liquidators seek a reversion of the Oriental transfer and is successful in doing so, thus reverting the ownership of THRE and THPM to TH, this may give rise to a claim for redemption by Forum under the change of control provisions of the Bonds”
Basically,if the “sale” of the subs for 2mio to Barrett,,GS valuation above 30mio,is reversed,triggers the put.
“In addition, Forum may contend that the TH Liquidator Appointment constitutes a change of control under the Bonds.”
We have maintained this position on here,in my opinion after reviewing the relevant doc.’s it does.
“If the parties proceed to arbitration in accordance with the terms of the Bonds, and if the arbitration tribunal agrees with Forum, then Forum will have the right to cause TCT to redeem the Bonds.”
Only slight problem here is that w/o asset sales TCT simply does NOT have the readies to redeem them bonds !
“Oh, what a tangled web we weave
When first we practise to ……”
http://ir.treasurychinatrust.com/phoenix.zhtml?c=237568&p=irol-irhome
And the hits keep on coming…will find the article,and CFA info…..
“The board of THRE is extremely disappointed that the BT Article has conveyed incorrect information and has requested the relevant parties to rectify the statements and, in the future, to verify details of TCT with THRE prior to publication.”
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTYyNjU5fENoaWxkSUQ9LTF8VHlwZT0z&t=1