Winding-up may force equity sales

SHARES LINK:A COMPANY owned by developer Liam Carroll that was placed in provisional liquidation is exposed to bank loans secured on shares in food group Greencore and ferry company Irish Intercontinental Group (ICG).

The appointment of the provisional liquidator could result in some or all of these shares being sold in the winding-up of Mr Carroll’s holding companies, Jersey-based Morston Investments and Vantive Holdings.

Morston has been guaranteed by another Carroll-controlled company called Gainsco, which has shares in Greencore securing loans provided by Ulster Bank, according to court filings.

The bank, owned by Royal Bank of Scotland, is one of eight banks owed €1.2 billion on unpaid loans due from Mr Carroll’s Zoe group. Vantive and Morston are holding companies in the group.

Mr Carroll owns 29 per cent of Greencore through Gainsco.

Morston is also guaranteed by another Carroll-owned company called South Morston Investment Company. Allied Irish Banks (AIB) holds a loan charge over that company’s shareholding in ICG.

Mr Carroll owns some 29 per cent of ICG, which is the subject of a protracted takeover battle involving the company’s chief executive Eamonn Rothwell, investment group One51 and Cork-based company Doyle Shipping.

The survival plan for Mr Carroll’s wider development business, including two other groups, Dunloe Ewart and Orthanc, included proposals to sell a number of his equity positions to finance the rescue of the group.

Mr Carroll valued the group’s investments in publicly quoted companies at €115 million at the end of June, according to the survival plan.

He has reported multi-million-euro losses on the equity positions over the past year due.

The provisional liquidator will be tasked with selling the assets of Vantive and Morston, and related subsidiary companies. He may also take control of other assets, including shares provided as collateral on inter-company guarantees within Mr Carroll’s overall group.