The daughter of the late NSW premier Neville Wran was "terrified" and "desperate" to buy the illicit drug ice on the night she, her boyfriend and another man allegedly killed an inner-Sydney drug dealer.
Fairfax Media understands Harriet Wran has told police she was "numb on ice" - the drug methylamphetamine - at the time a fight broke out in a Redfern unit on Sunday night.
Police allege Ms Wran, 26, attended the unit in Walker Street, Redfern, with two other men. They were due to meet Daniel John McNulty.
However, a fight broke out over the $70 drug deal, and Mr McNulty was stabbed to death.
Ms Wran, her boyfriend, Michael Lee, 35, and Lloyd Haines, 29, have been charged with murder.
Police allege the trio went to the unit with the joint intention of killing Mr McNulty.
Ms Wran's barrister Winston Terracini, SC, arrived at Liverpool Local Court just before 11.30am, saying his client would be pleading not guilty and would not be applying for bail.
Sources have told Fairfax Media Ms Wran will claim all she wanted to do was to feed her addiction to ice.
She has also been "basically living on the streets" for weeks, and when she was arrested had not a cent or single bank card in her possession.
Mr Lee did not appear when his matter was briefly mentioned in Liverpool Local Court.
He did not apply for bail and it was formally refused. His matter was adjourned until October 8.
Ms Wran was arrested with Mr Lee at Liverpool train station on Wednesday afternoon.
Brett James Fitzgerald, 42, a witness, was stabbed multiple times during the altercation and was taken to St Vincent's Hospital, where he remains in a stable condition.
Following investigations, a red hatchback was found in Waterloo about 3pm on Wednesday, police said.
Mr Haines was charged with Mr McNulty's murder earlier this week, and faces additional charges of attempted murder and aggravated break and enter.
He appeared at Parramatta court on Wednesday and was formally refused bail.
Friends of Mr McNulty expressed their shock and sadness following his death.
"Your sharp wit, world observations, humour and brilliant dance moves will be missed my friend. Rest in Peace," one friend wrote on Facebook.
Another friend wrote that Mr McNulty was a talented musician who performed in a band with him in the early 1990s.
"Daniel was a funny, talented and gifted musician who had an on going battle with addiction," the friend wrote.
"He, like so many others hated what he had become but couldn't get away from it, being on a treadmill of hand to mouth subsistence living, trying to keep off drugs in his environment was impossible."
The friend remembered Mr McNulty as a "funny, driven, sensitive man".
Ms Wran's mother, Jill Wran, returned to Sydney on a Qantas flight from Brisbane on Thursday morning.
She appeared distressed and declined to speak to waiting media after disembarking.
When asked for comment, she said: "Please don't."
smh.com.au, with Megan Levy