Two companies in troubled property group Zoe are to be wound up, a High Court judge has ruled, but a stay has been granted pending a Supreme Court appeal of the court's rejection of the group's bid for examinership.
Dutch-owned ACCBank, which is owed €136 million, yesterday asked Mr Justice Clarke to appoint a liquidator to group’s two holding companies, Vantive Holdings and Jersey-based Morston Investments.
This afternoon, Mr Justice Frank Clarke said the bank would be allowed to wind up the companies, but granted a seven-day stay on the order until September 22nd.
Mr Carroll's lawyer, Bill Shipsey, said he plans to appeal today's ruling to Ireland's Supreme Court. Mr Carroll had sought court protection from his creditors to allow him time to restructure the debt.
The judge last week rejected an application from the Liam Carroll-controlled group for the appointment of an examiner to seven of the Zoe companies.
Yesterday, the court was asked to continue High Court protection of the Zoe companies while its legal team brought yet another appeal to the Supreme Court.
The group, which has debts of €1.3 billion, has been fighting for examinership of the seven companies for the past two months.
On Friday, Mr Justice Clarke noted that due to several court applications, the group had essentially secured protection over the past two months. He said that while this was “not through any wrongdoing” by it, he would take that into account and would be “very reluctant” to grant a stay on his order pending any appeal for longer than “the shortest conceivable period, if at all”.
The liquidation of Vantive and Morston and the receivership of related companies – Villeer Developments, Peytor Developments, Carragh Enterprises, Parlez International and Royceton – has been on hold since July when Mr Justice Peter Kelly first refused to accept that any of them had “a reasonable prospect of survival”.
After that decision was appealed unsuccessfully to the Supreme Court, the Zoe legal team, led by Bill Shipsey SC, was allowed another opportunity to convince the High Court that the group could survive under a new business plan.
Mr Justice Clarke threw out that application on Thursday last but granted Mr Shipsey, who appeared with barrister Bernard Dunleavy, a stay until yesterday to take instructions on whether or not to appeal again to the Supreme Court.
Mr Shipsey told Mr Justice Clarke that Zoe wished to appeal his ruling and the Chief Justice had indicated that the earliest the Supreme Court could sit to consider or issue directions as to an appeal was early next week – Monday or Tuesday.
Mr Shipsey argued that the liquidation of Vantive, the petitioner in the two failed examinership applications, suited nobody as it would lead to all the group’s properties coming on to the market at one time.
He said the group and banks had sought the orderly disposals of assets over time and to avoid firesales of properties.