AIB secures orders against Zoe firms

ALLIED Irish Bank has secured orders from the Commercial Court appointing a receiver over a large number of properties owned by companies in the insolvent Zoe Developments group as part of its effort to recover loans of more than €550 million made to the companies.

Receiver William G O’Riordan will have the power to effectively act as a landlord of the properties, manage the companies’ interest in them, receive rents and enter leases, Mr Justice Peter Kelly directed. The receiver was not entitled, at this stage, to enter into possession of or to sell the properties, he added.

AIB had already, in his view “wisely”, said it would not be seeking to sell properties given the current “wretched” state of the property market, he noted.

The judge appointed the receiver after making orders the €550m loans are “well-charged” (well-secured) over the various properties via equitable mortgages created on the basis of undertakings by solicitors for the Zoe companies to hold the title deeds of the properties in trust for AIB. All title deeds have been lodged with the bank.

AIB had brought its action against five Zoe companies – Danninger, Eppo Developments, Fabrizia Developments, Oze Construction and North Quay Investments.

Bernard Dunleavy, for the companies, indicated earlier this week they would not be opposing the making of the well-charging orders or the appointment of a receiver.

The affected properties are located in Dublin and include both commercial and residential developments.