Irish Times
21st September 2009
THE DUBLIN Docklands Development Authority (DDDA) agreed to buy 51 apartments
from Liam Carroll’s beleaguered Zoe development group, which is appealing the
High Court’s rejection of its rescue plan to the Supreme Court for the second
time this week.
The group cited the DDDA’s purchase of the apartments as one of the measures in
the survival plan proposed to the courts.
The group told the High Court that the purchase of the apartments at Castleforbes
Square and Northbank in the docklands would generate €10.9 million in sales.
The court was told that contracts were issued to the DDDA but were not yet
signed. The group had 815 completed residential units at August 13th, 2009.
Zoe is appealing a High Court ruling rejecting an unprecedented second bid for
protection and the appointment of an examiner.
Allied Irish Banks (AIB), which is owed more than €500 million by the group, and
Bank of Scotland (Ireland), which is owed about €340 million, are the two
largest lenders to the insolvent group.
AIB agreed to lend Zoe €27.3 million from August to the end of the year to repay
trade creditors.
The group plans to pay creditors €13.9 million during the remainder of this year,
almost €2.5 million in 2010 and €205,000 in 2011. AIB provided €20 million and
Bank of Scotland (Ireland) €10 million to settle with creditors to stop any
threats to wind up Zoe companies over unpaid debts. The banks are also rolling
up interest owed by Zoe.
Part of the AIB loans were used to fund the group’s overheads.
Loans from the bank were also used to repay creditors of Orthanc, another
Carroll-controlled group.
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