Receiver appointed to four Zoe Group firms

A receiver has been appointed in the Commercial Court to four companies owned by Liam Carroll's Zoe Group on application from AIB.

Mr Justice Peter Kelly said the receiver may take possession of interest of properties owned by Danninger Ltd, Eppo Developments and North Quay developments and Oze Ltd and manage them as rented properties and ongoing concerns.

He refused the power to sell them, saying it would make no sense trying to sell the properties given the wretched state of the market

He also declared AIB's claim for €554m stands well charged against the four companies in question. A decision relating to a fifth company owned by the Zoe Group will be made next week.

Mr Justice Kelly said there was little doubt that letters of undertaking given by solicitors for the four Zoe group companies charged the properties in favour of AIB. The judge reiterated that the letters were an unusual form of security given the extraordinary amounts in question, even though there was an agreement that legal mortgages would be put in place for the properties.

Despite the letters being less satisfactory, it did not mean they were devoid of legal effect, he said, and he added he was satisfied that AIB was entitled to the 'well charging order'. None of the Zoe group's companies were represented by counsel in court.

The affected properties are located in Dublin and include both commercial and residential developments. They include premises located at 6 and 7 Barrow Street; 82 Kilmainham Bank; 62 and 63 North King Street; 23 and 25 Botanic Road; 3 Ropewalk Mews, Dublin 4; Smithfield Lofts; Smithfield Gate; Red Cow Lane; 19 Upper Abbey Street; The Barleyhouse, Cork Street; The Island, Chapelizod;, and Loreto Abbey, Rathfarnham.