Carroll 'impaired by stress', court hears

Developer Liam Carroll was impaired due to stress when he opted to omit important information in his original petition seeking the appointment of an examiner to companies in the Zoe group, the High Court heard today.

Today at the High Court Mr Justice John Cooke was told that the information, which includes detailed valuation reports from estate agents on the future prospects for properties owned by the group, has now been included and updated in a new application for the appointment of an examiner to companies in the Zoe group.

The failure to include that information was cited by the Supreme Court as one of the key reasons why it had rejected the group's claims that it could survive as a going concern.

Late last Friday night Mr Justice Eamon deValera allowed the firm's application to present the petition only on the strict undertakings not to prejudice the position of the provisional liquidator and receiver appointed to the firms at the request of ACC bank.

Tomorrow Mr Justice Cooke will commence hearing a preliminary application to determine if the petition to have the companies put into examinership was properly presented to the High Court.

The petition is a second attempt to secure court protection after the High Court and Supreme Court refused to appoint an examiner to the firms.

If the application, made on behalf of the company's lawyers is successful it will allow the examiner put a scheme of arrangement together that would allow them to continue to trade.

Zoe, which has presented a new independent accountant's report stating that it has a reasonable prospect of survival, has bank borrowings of €1.2bn.

The firms are grossly insolvent and in a winding up scenario the deficit is estimated at €1bn.

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 other companies include Villeer Developments, Peytor Developments, Caragh Enterprises Ltd and Parlez International Ltd.

The firms have a very substantial portfolio of investment and development outlets and a seventh company Royceton.

The case continues tomorrow.