Banks to begin efforts to recoup Carroll loans

A number of Ireland's leading banks are expected to begin steps to recoup more than €1bn from property developer Liam Carroll today following a ruling by the Supreme Court last night.

The court dismissed an appeal by Mr Carroll against the High Court's refusal to put six companies in his Zoe group into examinership.

Mr Carroll had sought the measure to protect him from a bid by ACC Bank to recover €136m in loans.

The petition to have an examiner appointed to his 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 are Villeer Developments, Peytor Developments, Caragh Enterprises Ltd and Parlez International Ltd. The firms have a very substantial portfolio of investment and development outlets.

Mr Carroll's lawyer argued that other lenders all supported a plan to put the six companies in question into examinership so they could trade their way out of difficulties.

However, the Supreme Court said it had seen no evidence that the firms had a reasonable prospect of survival.

That means creditors may now try to force the companies into liquidation in an effort to recover their money.