Supreme Court grants stay to Zoe companies

The Supreme Court has granted a stay to several companies in the Liam Caroll-controlled Zoe building group pending an appeal next week of the High Court's refusal to appoint an examiner to them.

The companies claim High Court Judge Peter Kelly erred in a number of ways last week when refusing examinership to the firms which has borrowings from financial institutions of €1.1bn.

Today the Supreme Court of Chief Justice John Murray, Mr Justice Nial Fennelly and Mr Justice Nicholas Kearns placed a temporary stay on Mr Justice Kelly's refusal after finding the companies had arguable grounds of appeal.

The stay continues pending the full appeal which is due to be heard next Tuesday.

The Chief Justice said that the stay was being granted because there is a constitutional right of appeal. He said that the normal situation is a stay is granted where an appeal is brought promptly.

He was satisfied the companies had arguable grounds of appeal but, he added, that was not a reflection on the merits of the appeal.

In this case the appeal itself would be pointless if a stay was not granted.

Mr Justice Kelly had refused court protection to the six companies. The judge described the survival proposals as "fanciful".

ACC Bank, whose demand last month for repayment of €136m loans led to the application for protection, had opposed the stay.

The petition to have an examiner appointed to Liam Carroll's firms was brought by Vantive Holdings which, with Jersey-registered Morston Investments Ltd, are the parent companies of around 50 companies known as Zoe Developments.

The four other companies involved - Villeer Developments, Peytor Developments, Caragh Enterprises Ltd and Parlez International Ltd - were presented with demands from ACC for repayment of loans.