Liam Carroll hearing to happen next week

A second attempt by the Liam Carroll-controlled Zoe Group to be placed into examinership will be heard by the High Court next week.

Today Mr Justice John Cooke fixed Tuesday, September 1 next for the hearing of a petition to grant the troubled property group protection of the High Court

The group, which has bank borrowings of €1.2bn, claims it will collapse if an examiner is not appointed

The judge fixed the date while giving the reasons for his decision to allow the companies leave to apply to be placed into examinership.

The group's application for examinership, which has previously been rejected by Mr Justice Peter Kelly in the High Court and the Supreme Court, is expected to be heard by Mr Justice Liam McKechnie.

Mr Justice Cooke also directed that the petition be advertised and that creditors be put on notice. He also ordered that any affidavits be served by close of business on Friday.

Today counsel for ACC Bank, who have opposed to the appointment of an examiner, said that his clients wished to prepare a number of affidavits.

Lyndon McCann SC said these including ones from a valuer, an economist and an insolvency practioner. These statements would be in response to the contents of a independent accountant's report which states that the Zoe Group has a reasonable prospect of survival.

Last Friday in granting the firm's leave to apply to be placed into examinership Mr Justice Cooke said that there were "strong reasons" why a new petition to allow the companies in the troubled property group seek the protection of the court should be fixed for hearing.

The judge said that there was nothing in the Companies Law that prohibited the bringing of a second petition and noted that the overwhelming majority of the companies’ creditors, employees and those having business with companies controlled by Mr Carroll are supporting the new petition.

Those parties' interests, the judge stated, should not be affected by any past mistakes, misjudgements or misconduct of the directors of the companies.

The judge, who was urged on behalf of ACC bank to use his discretion not to allow the petition to proceed to be heard, said that the application despite the previous refusals "was not an obvious abuse of process".

The company claims that it has addressed the issues in its new petition which resulted in its previous application being refused.

The group is seeking to go into examinership, which would give an examiner 100 days to come up with a scheme that would allow the firms to continue to trade as a going concern.

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.