Carroll owes more than €1.1bn to AIB

OF the €2.8bn in debts accrued by developer Liam Carroll through his 175 companies, more than €1.1bn is owed to Allied Irish Banks.

Net worth statements prepared by the developer put his total debt at between €2.7bn-€2.8bn at the start of the year.

Bank of Scotland is owed €700m and the other €1bn is owed to six other banks.

In his failed attempt to secure High Court protection for his Zoe group of businesses, the developer admitted those businesses alone owed €1.2bn.

In deciding that an examiner should not be appointed to the businesses, Mr Justice Peter Kelly said he was not convinced that the companies had proven that they met the legal test of having a reasonable prospect of survival, adding that the projections put forward by the companies in their application were “devoid of reality”.

ACC Bank, which brought the action to the High Court, had threatened to liquidate a number of companies in the business, potentially toppling the entire group, unless it was repaid debts totalling €136m.

While Mr Carroll will be given the opportunity to appeal the decision at the Supreme Court tomorrow, questions were being raised over the weekend as to whether his debts could be taken over by NAMA.

The Government has insisted that debts which are already the subject of the receivership or liquidation will not be taken on by NAMA.

However, in an interview on RTÉ radio over the weekend economist Dr Peter Bacon said that if the Supreme Court reaches the same conclusion a receiver will be appointed on behalf of the six banks.

“Of course, NAMA is going to take the place of the banks,” he said. “My guess would be if a receiver is appointed, he would be dealing with NAMA.

“NAMA is taking the position of the banks with respect to land and development loans, so I think NAMA would be stepping into the shoes of the banks. So why should it be different in this instance? There are more banks involved than ACC.”