Shares Sprial Downwards As Carroll Empire Crumbles

Bank shares have tumbled as a court ruling removed protection from the property empire of developer Liam Carroll.

Shares in Bank of Ireland and AIB fell this morning following the Supreme Court ruling yesterday that ended court protection for six of developer Liam Carroll's companies.

So far Bank of Ireland shares have fallen by 5.5%, while AIB were 3% lower this morning due to their inability to claw back any of their outstanding loans to the tycoon.

Mr Carroll's reported multi-billion euro empire is now in jeopardy, with his Zoe Group of companies facing debts of more than €1.2 billion.

A number of banks are today expected to begin the process of picking over the bones of his companies, with a view to recouping a fraction of their losses.

There are fears the events could disrupt the work of the National Asset Management Agency who have been charged with buying up the states toxic assets, but it is believed a lack of demand in the economy could stave off any upset to the Agency.

During proceedings, the court heard that Mr Carroll's companies had submitted a rescue plan to the court suggesting that if the group was protected long enough to develop its existing sites and sell assets it could emerge with a surplus of €290 million.

However, a deal for protection was refused after hearing the companies seeking protection had a deficit of €265 million, while the wider Zoe Group was facing a shortfall of more than €1 billion if liquidated.

(DW/BMcC)