The Supreme Court has dismissed the appeal by six companies controlled by property developer Liam Carroll against the Commercial Court's decision not to appoint an examiner to them.
The companies sought court protection because ACC Bank has started winding up proceedings to recoup loans worth €136m that it had given to the companies.
Vantive Holdings, Morston Investments and four other companies in the Zoe Group have combined debts of more than €1bn.
The ruling opens the prospect of a firesale of some of Mr Carroll's property portfolio.
A three-judge division of the Supreme Court led by the Chief Justice John Murray deliberated for over four hours before dismissing the appeal.
In a 31-page judgment, the court said it was refusing the appeal because it had concluded that the companies had not established that their strategy for a future orderly disposal of the key assets of the company is credible or reasonably viable.
The court said the moratorium on the repayment of interest and capital by most of the companies' banks is a valuable and very positive step for a company that is insolvent and that is endeavouring to trade out of difficulty.
However, it said it was not satisfied that the companies had shown the commitment by the banks to future financing.
It described as 'striking' the fact that there was no evidence or material furnished to the court giving any commitment by any bank to continue to provide finance for the future day-to-day operations.
Nor is there any explicit statement from the companies, it said, that they have been given such a statement.
It describes as 'remarkable' that if a commitment had been given, it was not stated.
The court also said it cannot be without some significance that none of the banks have spoken in support of the proposition that there is a reasonable prospect of survival.
The Construction Industry Federation said it noted the Supreme Court decision and said it needed to take some time to consider in full the implications of the ruling.
A spokesman for the Department of Finance said that the decision will have no impact on NAMA and it will proceed as planned.
Commercial Court judge Mr Justice Peter Kelly refused to appoint an examiner 11 days ago to Vantive Holdings, Morston Investments and four other companies that are part of Mr Carroll's Zoe Group.
Senior Counsel for the companies had argued that Mr Justice Kelly had made a number of errors in his judgement, including not giving enough weight to the fact that seven of the companies' eight lenders continue to support them.
