In a landmark liquidation, Treasury Holdings, the parent of one the largest property development groups in Ireland, and fifteen related entities, have been placed into compulsory liquidation by the High Court.

A financial institution applied for the winding-up order on foot of a number of guarantees provided by Treasury Holdings and related entities in respect of group borrowings.  Treasury Holdings had originally contested the winding-up application and secured a short adjournment to October 2012 to allow for any interested parties to approach the group’s largest creditors with new proposals, or to advance any existing proposals.

However, interested parties failed to make any significant progress during that period and, on 7 October 2012, Treasury Holdings informed the Court that it would no longer contest the winding-up application.

Accordingly on 11 October 2012, the Court appointed Paul McCann and Michael McAteer of Grant Thornton as joint liquidators of Treasury Holdings and related entities. As liquidators to the parent company of the Group, the liquidators may take control of other entities within the group as part of the winding-up process. The liquidators will also be tasked with investigating the validity of a transfer of a management company by Treasury Holdings to a shareholder at the 11th hour, which emerged during the winding-up application.

The liquidation of Treasury Holdings follows enforcement action by group security holders earlier this year. In January 2012 NAMA, both individually and as a syndicate member, commenced enforcement action against Treasury Holdings and appointed receivers to a number of the group’s assets. Treasury Holdings subsequently applied to quash NAMA’s decision to enforce. However, in July 2012, NAMA, represented by William Fry, successfully opposed the application and its receivers remain validly appointed.

Contributed by Craig Sowman.

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