The High Court will give its decision on Friday afternoon on an application by six companies controlled by property developer Liam Carroll to have an examiner appointed to them.
The application was prompted by a move by ACC Bank to bring winding up proceedings against Vantive Holdings, Morston Investments and four other related companies, over unpaid debts of €136m.
The Commercial Court this morning heard arguments from counsel for Vantive Holdings, Jersey registered Morston Investments and four other related companies, in support of them receiving the court's ongoing protection.
Senior Counsel Michael Cush said the companies had historically been very successful, but had more recently experienced difficulty due to credit problems, the downturn in the property market, and problems with investments.
In particular, he said difficulties arising from the development of a new headquarters for Anglo Irish Bank at North Wall quay.
He said Vantive Holdings is now clearly insolvent, as are three other companies related to it. If liquidated, he said, the estimated deficiency of the group as a whole would be over €1bn.
But Mr Cush said that following the drawing up of a business plan in 2008, seven of the companies' eight banks had supported the continuation of the businesses.
Mr Cush also read parts of an affidavit from Liam Carroll, in which the businessman outlined details of development sites which the companies hold, which he said would be at the forefront of future development and would regain value quickly when the market improves.
The court also heard that the independent accountant appointed to file a report on the companies prior to the application also believed they have a reasonable prospect of survival.
His report detailed how since the new business plan was put in place, the companies had sold 39 residential units, worth €11.7m.
The court was also given details of the complicated ownership structure of the six companies and wider group, which the judge described as a 'spiders web'.
Mr Cush told the court that although registered in Jersey, Morston Investments has its only office here, has board meetings here, its directors are Irish and has assets here.
Justice Kelly asked whether the captains who 'navigated the ship onto the rocks' would be remaining in charge if the company went into examinership, which Mr Cush confirmed they would.
The court also heard from Senior Counsel Rossa Fanning, on behalf of ACC Bank, who said his client was maintaining its 'neutral guarded' position.
