THE COMMERCIAL Court will today hear an application to appoint an examiner to the Zoe group of companies controlled by developer Liam Carroll.
The companies have debts of more than €1.1 billion and moved for examinership last week amid concerns ACC Bank, having issued demands for repayment of loans of some €136 million, might move to appoint a receiver.
When the proceedings came before Mr Justice Peter Kelly at the Commercial Court yesterday, he heard from counsel representing various banks and the Revenue Commissioners that they were neutral on the examinership application. Rossa Fanning, for ACC, said his client was “guardedly neutral” and had raised a number of issues.
The judge was told Allied Irish Bank is owed some €489 million, ACC was owed €136 million and the Revenue was owed some €369,944.
The judge said, such was the number of cases before him yesterday – 91 cases in total – he was unable to deal with the examinership petition then.
The judge said he had read the papers in the matter and had a number of queries which he would raise when the case came back before the court.
Michael Cush SC, for the Zoe group, said an additional affidavit filed on behalf of his client yesterday may have addressed the queries of the court and ACC. Counsel also confirmed the petition for examinership had been advertised in accordance with the directions of the court.
The petition for protection is by Vantive Holdings. It and Jersey-registered Morston Investments Ltd are the parent companies of about 50 companies known as Zoe Developments.
Four companies within the group, Villeer Developments, Peytor Developments, Caragh Enterprises Ltd and Parlez International Ltd, are facing demands from ACC for the repayment of €136 million loans given to them in 2007 and 2008.
When the matter was previously before the court, it was told the directors and an independent accountant believed a scheme of survival could be put in place allowing the companies trade out of their difficulties.
The court heard the Zoe group has substantial borrowings from various banks of some €1.1 billion.
AIB was the largest lender, accounting for 40 per cent, Bank of Scotland Ireland 23.8 per cent, ACC 10.7 per cent, Bank of Ireland 9.3 per cent, Ulster Bank 6.7 per cent, Anglo Irish Bank 3.1 per cent, while a number of smaller institutions were owed smaller sums.
The court was told other banks with links to the four companies had come to agreements over restructuring debts but the court protection application on July 17th was precipitated because ACC had issued letters of demand over its loans which were due to expire on July 21st last.
The companies involved do not have any employees and contract the services of other companies.
Under the proposed survival scheme, it is proposed an arrangement will be made with secured creditors, including ACC, under which interest would be deferred until a business plan was put in place over the next 30 months to sell off a number of developments which the group has built. There would not be any writedown of bank loans, it was stated.
