ACC submits evidence contesting Zoe survival plan

DUTCH LENDER ACCBank has submitted evidence from an economist, property valuer and insolvency specialist to support its case in court that Liam Carroll’s Zoe group does not have a reasonable chance of survival.

The bank has filed affidavits from Simon Coyle, an insolvency practitioner at accountancy firm Mazars, and Seán O’Neill, a valuer and property specialist at estate agent DTZ Sherry FitzGerald.

Mr Coyle and Mr O’Neill could not be reached for comment last night. The identity of the economist, who will support ACC’s case in the group’s court petition next week, could not be confirmed.

ACC is opposing an application from seven insolvent companies in the group to seek up to 100 days’ breathing space from its creditors under a period of examinership.

The High Court agreed to give companies in the Zoe group a second chance to seek the appointment of an examiner after a first application was rejected by the High Court and Supreme Court.

After the High Court agreed to grant a second bid for protection, counsel for ACC said the bank would submit affidavits from a property valuer, economist and insolvency practitioner to respond to the companies’ claims that they can have a reasonable chance of survival with support from banks.

The judge gave ACC until 6pm yesterday to file the affidavits in advance of the examinership application, which is due to be heard over two days starting on Tuesday.

Mr Coyle will challenge the findings of KPMG’s independent accountant’s report which has concluded that the companies have a reasonable prospect of survival.

Mr O’Neill will contest the findings of estate agents David Cantwell of Hooke MacDonald and Enda Luddy of CB Richard Ellis who provided valuation reports to support the group’s long-term survival plan.

KPMG found that the Zoe group would have assets worth €1.36 billion if there were an orderly development of sites and disposal of properties over a three- to five-year period, which would cover liabilities of €1.35 billion.

The group’s valuers said that its properties would be worth €1.211 billion over three years, but €644 million if sold over six months in distressed sales.

It has emerged that Royceton, one of the companies seeking examinership, is owed money by debtor companies in the Dunloe Ewart and Orthanc groups, two other parts of Carroll’s development business. This could expose other groups across his business to threats of liquidation if Zoe group fails to secure examinership.