Zoe Group Denied Protection Of Courts

Developer Liam Carroll's Zoe group has failed to secure High Court protection against its circling creditors.

The High Court is expected to rule today on whether to agree an application by Dutch-owned ACC Bank to have a liquidator appointed to two Zoe group companies, following the disastrous decision against the Irish developer, Carroll, yesterday.

It is the second time the troubled group of companies has failed to win High Court protection from its creditors. ACC Bank is owed €136 million by the group.

This unprecedented second appeal for examinership status was opposed by Dutch-owned ACC Bank, who had earlier described the eleventh hour attempt at survival against multi-million euro debts as "aspirational".

Seven companies owned by the property developer were part of the high profile application for examinership before the High Court yesterday.

A ruling in his favour would have allowed Carroll time to hold back his debtors and stave off the decimation of the group, which is could result in the failure of the 51 company empire in the wider Zoe group.

The companies have debts of €1.2bn, but under a business plan submitted as part of its application, Carroll believed it could meet the debts over a three to five year period.

Part of the plan included the non-payment of interest for two years on its debts owed to eight banks.

The application was opposed by ACC Bank, which is owed €136m.

Zoe's original application was turned down by the Commercial Court and an appeal to the Supreme Court was also rejected.

(DW/GK)