Carroll co-operating with liquidator

DEVELOPER LIAM Carroll and his fellow directors of the two property companies wound up by the High Court on Wednesday are co-operating with the provisional liquidator appointed to the firms, writes SIMON CARSWELL, Finance Correspondent

Sources close to the companies said the liquidator was gathering information on the two holding companies in Mr Carroll’s Zoe group and their links to about 50 subsidiaries, and that he would engage with the directors shortly.

The provisional liquidator, accountant Declan Taite of Dublin firm FGS, was appointed by the court to Vantive Holdings and Jersey-registered Morston Investments on applications by Dutch-owned ACCBank, which is owed €136 million in unpaid loans.

Vantive’s directors are Mr Carroll, John Pope and David Torpey.

It has emerged that ACC intensified efforts to recover its loans on Wednesday by appointing Mr Taite receiver to four other Zoe companies – Villeer Developments, Peytor Developments, Carragh Enterprises and Parlez International – seizing control of the firms.

ACC has not made any comment on its various actions. Mr Taite also declined to comment.

The four companies provided guarantees to Vantive and Morston backing their loans which are secured on lands in the Dublin docklands held by the four firms.

All six companies were the subject of Mr Carroll’s unsuccessful attempt to secure court protection through the appointment of an examiner to put in place the long-term survival plan for his group.

Mr Carroll used Vantive and Morston as financiers to distribute bank loans throughout the group.

The group owes €1.2 billion to eight banks, seven of which were supportive of the survival plan.

ACC opposed the plan and its liquidation threats in demands for the repayment of its loans precipitated Mr Carroll’s failed attempts to secure protection in the High Court last month and in the Supreme Court last Tuesday.

The other lenders have made preparations to protect their loans with a view to appointing receivers to companies in the Zoe Group.

However, following an emergency meeting of a number of the banks on Wednesday, the lenders have adopted a wait-and-see approach until the full hearing of ACC’s liquidation application on September 9th.

The lenders met to consider a co-ordinated response following the Supreme Court’s rejection of the survival plan. They have put potential receivers on stand-by should they feel their loans are at threat by ACC’s various actions.

It is understood that the possibility of Mr Carroll making a fresh application to the courts for protection for his companies was raised in discussions among his lenders.

The option of the developer submitting more detailed valuations on the group’s properties to back up the proposed rescue plan was suggested.

The Supreme Court found that Mr Carroll had failed to provide evidence to show that the plan was “credible or reasonably viable”.

The court heard from counsel for Mr Carroll that detailed valuations had not been submitted as they were “highly confidential”.

Under company law, Mr Carroll can ask the High Court to appoint an examiner to a company where a provisional liquidator is in place if he can satisfy the court that it has a reasonable prospect of survival.

Such an application would have to be made within three days of the appointment of the liquidator.

However, legal sources said that the chances of any new application being successful were remote given the rulings of both courts.