News

Carroll granted temporary protection by court

Tuesday, 4 August 2009 22:22

The Supreme Court has given Liam Carroll temporary protection against creditors pending a full hearing next Tuesday.

The proceedings followed a High Court ruling on Friday when Mr Justice Peter Kelly refused to appoint an examiner to six companies, which owe eight banks €1.2bn.

The Supreme Court said it would allow a full hearing of the appeal against the High Court ruling next Tuesday at 11am.

Chief Justice John Murray said: 'I am satisfied that the petitioner has grounds for an appeal.'

At the Commercial Court on Friday, Mr Justice Kelly said he was not convinced the companies had proven that they met the legal test of having a reasonable prospect of survival.

The companies were seeking the court's protection after ACC Bank began proceedings to have them wound up because of €136m of unpaid debts.

Today, Senior Counsel for Mr Carroll's companies Michael Cush said the High Court judgment had not attached sufficient weight to the level of pre-planning that went into the application for examinership.

He said seven lenders had agreed to provide finance to discharge unsecured creditors and fund ongoing developments.

Mr Cush said the banks had agreed to a moratorium on repayment of debt for a number of years.

He added that the High Court had ignored the factor that the market could not absorb the amount of property, which would be made available if there was no examinership.