THE High Court yesterday rejected an application by eight companies, which acquired a majority interest in a Russian enterprise producing "titanium sponge", for an order which would prevent an Irish registered company reducing its assets below $20 million (£13.7 million).

The companies alleged they were told a significant part of the profits from the Russian venture was taken offshore through a group of companies referred to collectively as TMC.

These included an Irish registered company TMC Trading International Ltd, which has registered offices at Christchurch Square, Dublin. The other companies were TMC (Holdings) Ltd and TMC Trading Ltd.

The eight companies which applied for an interlocutory injunction against TMC Trading International were OBA Enterprises Ltd, Cerasus Investment Ltd, Pacani Holdings Ltd, Gabriel Capital L.P., IRR, Apricus Investments Ltd, Andersen Group Inc and Greencastle Enterprises Ltd.

Ms Justice Laffoy, who refused the interlocutory order, was later told that that TMC Trading International Ltd had given an undertaking not to make any distribution of profits to any person before the trial of the action or further order of the court.

Earlier, in her reserved judgment, Ms Justice Laffoy said the eight companies invested $85.640 million in a Russian company, Avisma, which produces titanium sponge and they had last year acquired a 58 per cent majority shareholding from two Russian companies, Rosprom and Bank Menatep.

The eight complained that, although they acquired the profits of Avisma which had been accruing through TMC to Rosprom and Bank Menatep before the takeover, they had not received an estimated profit of $20 million.

The judge said the eight companies had not adduced evidence to show that TMC Trading International was likely to dissipate assets.