THE SEVEN Zoe group companies applying for court protection are seeking to appoint a former partner of KPMG, the accountancy firm which drafted an independent report backing their survival, as their examiner.
The companies will seek the appointment of Ray Jackson, a retired partner of KPMG.
Insolvency sources said that company law did not exclude independent accountants who had drafted reports or former partners associated with firms that had drafted independent reports from becoming examiners, but that such a move was not common.
Mr Jackson, a corporate insolvency veteran, said in the petition filed by the seven Liam Carroll-controlled companies that he had “no conflict of interest which would disqualify his appointment”.
David Wilkinson, a partner with KPMG, said in the newly drafted independent accountant’s report for the companies that they had a reasonable prospect of survival.
He estimated that the group has a net worth of €10 million with assets of €1.36 billion and debts of €1.35 billion if lenders agreed to fund ongoing development and a two-year moratorium on interest.
The group’s properties are estimated to be worth €1.2 billion if developed and sold on an orderly basis over three to five years.
KPMG helped the group draft the key three-year business plan in December 2008, which was supported by all the group’s lenders, with the exception of ACCBank.
According to the new petition, the companies face a deficit of €1.155 billion if liquidated.
The petition says that the group can pay about 68 per cent of the interest due to its eight lenders, which are owed €1.27 billion.
The group is paying this by leasing 20 commercial properties which generate annual rent of €17.1 million. A further €12.7 million will come from another 12 commercial properties.
Agreements have also been reached on another five commercial properties which could yield annual income of €783,000.
The annual rental income due on the group’s commercial and residential investment properties stands at €27.5 million, according to the petition filed in court.
This will rise to €30.5 million a year as rent-free periods agreed with tenants at George’s Place in Smithfield and Macken House on Castleforbes Road, both in Dublin, are all due to expire this year.
The group estimates the dividends due this year from its shares in ferry firm ICG and food group Greencore will amount to €7.2 million and €3.6 million respectively.
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