The High Court has appointed an examiner to Tivway, a subsidiary of the Cork property development group Fleming, arising from a claim by ACC Bank for unpaid loans totalling almost €22m.
This gives Tivway breathing space to arrange a scheme to repay its debts.
Tivway also owes €268m to Anglo-Irish Bank, which supported the appointment of the examiner.
ACC Bank lent Fleming subsidiary Tivway the €22m for the development of the Sentinel Building in Sandyford in Dublin.
Today it remains a 14 storey concrete shell.
The High Court heard a commercial estate agent's report estimate it might be worth between €500,000 and €1m. And that is in an area where the same agent estimates a three year supply of office space already exists.
Tivway also owes €268m to Anglo-Irish bank in connection with a separate development.
SC for Tivway Lyndon McCann told the court that the €22million it owed ACC represented just 2% of the total debt of the Fleming Group. This would put its debts at just over €1bn.
It was also claimed that if Tivway was wound up, 650 jobs in the wider Fleming group would be at risk.
Denis McDonald, senior counsel for ACC Bank, disputed this.
Tivway owns two properties in the Sandyford Industrial Estate, including the partially-built Sentinel building.
The Dutch owned ACC is owed €22m in relation to this property while Anglo-Irish Bank is owed €268m on a separate property known as 'the Aldi site'.
