TREASURY HOLDINGS, which had borrowings of €2.7 billion at the end of February, does not expect to be able to repay loan notes due to mature next May.
Accounts for Treasury subsidiary Saundby Ltd, filed recently, outline how the group had loan notes and zero dividend preference shares totalling slightly less than €400 million.
It was also unable to make interest payments of €10.6 million due on the loan notes in August, according to the accounts which are dated November 15th.
The group has reached an outline agreement with entities owed money in relation to the financial restructuring of the related company, Real Estate Opportunities, and the demerger of its Battersea Power Station property in London.
One-quarter of the development costs for Battersea are being provided by the group.
Subsequent to the end of February, according to the accounts, group loans totalling €1.4 billion were transferred to the National Asset Management Agency (Nama).
A detailed business plan has been submitted to the agency and the group is awaiting a response.
Key assumptions in the plan, for the period to the end of November next, include renewal by the agency of the loan facilities and the provision by it of working capital.
It also envisages the acceptance by the loan-note holders and others of certain alternative arrangements, the finding of a new equity partner for the Battersea project, and the ability of the group to raise further capital after its debt facilities have been renegotiated.
Treasury Holdings is owned by Richard Barrett and John Ronan. Accounts for another of their companies, Ballymun Shopping Centre Ltd, filed recently, show its loans of €28 million from Anglo Irish Bank have also been transferred to Nama.
The accounts show the company, which is involved in the redevelopment of Ballymun in Dublin, reduced the value of its property by €51 million during the year to the end of February.
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