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Irish tycoon’s collapsed empire to be sold off after court ruling
Wednesday, 12 August 2009
Irish developer Liam Carroll last night lost a battle to protect his multi-billion euro empire, raising fears the Republic’s property market will be plunged into further turmoil.
Dublin’s Supreme Court rejected his survival plan — saying it was neither credible nor viable.
A number of banks are today expected to begin the process of picking over the bones of his companies with a view to recouping a fraction of their losses. They will be led this morning by ACC Bank, who may seek to wind up his companies, appoint a liquidator, or receivers.
The tycoon's Zoe Group of companies is laden down with bank debts of more than €1.2bn (£1bn) — and a fire sale of his assets could undermine the government's NAMA plan to remove €90bn (£77bn) of toxic development loans from bank balance books.
However, it is unlikely there will be an immediate rush to sell off assets that there is no demand for in the current climate.
Declan Black, head of insolvency and litigation at business law firm Mason Hayes and Curran said: “If a receiver or liquidator appointed by ACC sought to sell properties promptly, that could set a low threshold for market value and, in turn, impact on NAMA property valuations.” He added: “Equally, any sale of debt could impact on NAMA's loan valuations.”
Mr Carroll lost court protection on day 14 of his examinership action after the Supreme Court led by Chief Justice John Murray ruled that his survival plan was not supported by any objective evidence.
The developer had painted a doomsday scenario of hundreds of job losses and thousands of apartments flooding the already depressed Dublin property market. But the Supreme Court was unmoved by his claims after ruling that he had failed to pass the basic legal test for examinership.
The three-judge court criticised Mr Carroll for relying on outdated valuations by estate agents when those valuations had not been presented to the High Court or the Supreme Court.
The judgment will have several repercussions for the Dublin government's plan to pass the NAMA legislation next month. It raises the prospect of destabilising the property market, but it also challenges the assumptions underlying the legislation. NAMA is predicated on the notion that property prices will rise over the next decade or two.
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SM & Dublin(er) you have to realise that the people you are dealing with here still quake in their boots at the very thought that they have anything to do with the republic of Ireland. They (and their forefathers) have been propagated with the 'Home Rule = Rome Rule' nonsense for so long that it is beyond them to even contemplate that they could in anyway be connected with the larger part of the island. It would really appear that they have such an insular mentality that they are ignorant to basic economic facts. Also the argument from Get A Life on who is more dependant on EU money is pathetic, childish & laughable.
Posted by In The Name Of The Fada | 13.08.09, 09:39 GMT
Dublin(er) post is 100% accurate - well said.
I genuinely cannot believe people are saying that our economies are not linked - what planet are you guys on?
As someone who works for a multinational company in Belfast, we would have closed up in Belfast by now had it not been for work we are doing down South.
Also, go to any border county/town - Newry, Derry, Armagh, Enniskillen and ask people if the economies are linked.
I would say people who think they are not live nowhere near the border and probably have crossed the border very little.
Posted by SM | 13.08.09, 00:04 GMT
The economy in Northern Ireland is of course influenced by what happens to the economy in the Republic, house prices, cost of living, utilities etc are all linked between Northern Ireland and the Republic.
However, the faltering economy in the Republic is much less influential to Northern Ireland than the British economy as we are part of the UK economy; but I also believe that the Republic's economy is much closer linked to the British economy than many would like to believe or admit.
I take no pleasure out of seeing the Republic's economy in turmoil, but if the banks let Carroll's empire collapse, it would be quite disastrous for the Republic's housing market and for many of the citizens of the Republic who will be left with large negative equities with many possibly in a worse position of losing their homes and facing a mountain of debt.
Anyone who is taking pleasure in the current economic predicament of our neighbours should really take a close look at themselves.
Posted by Steven73 | 12.08.09, 23:18 GMT
Are the Irish Gov not paying a large proportion of the A5 upgrade and motorway at Larne- 100's of millions? Yes- they are. Get your facts right.
Ireland are net contributors to the EU- I suggest you google that to understand what it means.
Posted by Ronan | 12.08.09, 22:05 GMT
Good God - the energy all you guys expend propping up your little arguments about how British/Irish Northern Ireland is just blows me away - and I speak as a former citizen of Northern Ireland (now better make sure I don't call it "The North" in case I upset half of you, hadn't I?) - the World could collapse around your ears and you wouldn't notice!!!!!!!!!!
Posted by the real robin | 12.08.09, 20:10 GMT
Get a life, Ireland is a net contributer to the European Union, so that's exactly what WE ARE doing - paying back. Of course we recieved funds, when the United Kingdom entered so did they, and they still do to this day. Indeed, the infamous "rebate" was given to the UK because they couldn't afford to pay what was required to of them relative to their population size. So has Ireland recieved a lot of funding, yes? Has Spain? Yes, far more than any other in fact. Has your beloved UK? Most certainly.
The simple fact is this, we're both dependent on each other, some like NI, moreso than others. More idiotic comments about us not having two "pennies" to rub together. Well, come to Dublin and look around, does it look like we're falling apart to you? What utter tripe. The UK is struggling (look at the state of the UK budget), France just reported an 86 Billion Euro deficit on for 2009, Spain has 20 per cent unemployment and rising, do you throw such virulent comments at them? I doubt it.
Posted by Dublin(er) | 12.08.09, 19:40 GMT
A quick check has revealed that Ireland has just received €57Billion this year alone for development plans from the EU. That's just this year! Slightly more than our government provides for the running of Northern Ireland. Just to point out our government also provides funding to England, Scotland and Wales. So to single out NI for government funding is stupid.
Posted by Get a life | 12.08.09, 16:55 GMT
Dublin(er) How many millions have the EU had to pump into the Irish economy over the years? Billions and your economy is still on the brink of collapse. In fact Ireland has had the most money from the EU of any member country over the years and is still skint. Not the case in Northern Ireland, we may get hand outs but no where near the level paid to your country. Will your goverment be paying all the money back to all the citizens of Europe that have contributed? I doubt it, they don't have two pennies to rub together. Your Euros have not been used to better our roads or infrastructure. If they have we should have been given more cos they have been no improvements. Secondly our own goverment pays for those.
Posted by Get a life | 12.08.09, 16:50 GMT
Get a life, what utter rubbish. Of course both economies are linked, the NI private sector is inexorably intertwined with that of the Republic.
Remember you're on the island of Ireland therefore, the two economies are obviously intertwined. We're the bigger side so when things go downhill for us, they go downhill for you too.
Without Southern Irish euros flowing into your economy where would you be? That's right, in a far worse position than you are now - even taking into account your massively bloated public sector and your uncomptetitive economy. Without London's pounds coming from across the sea (7 billion to be exact and of what benefit to the British taxpayers I wonder?), I shudder to think of the state you'd find yourselves in. Indeed, if you're in such a better state than us you can give us back the millions of euro that we've invested in your roads and infrastructure. No? Didn't think so.
Posted by Dublin(er) | 12.08.09, 16:42 GMT
Sean may not be sectarian in this instance, but it is not hard to see what side of the fence he is on.
Fact - NI's economy is supported by and dependent on the rest of the UK. We sell stuff to ROI, importing very little.
My taxes are paid to the UK, not a penny to ROI, so how are the two economies linked?
Maybe Sean does pay ROI tax, and VAT at 21%?
Posted by J Stanley | 12.08.09, 16:41 GMT
Get a life, while I agree with you that Sean talks utter nonsense, I think you will find that the two economies of this island are linked. On an island this size it is impossible that they could not be linked. Are you that stupid that you believe that they are not?
Also Sean does post utter tripe most of the time but however you will find that his post on this particular subject is not secterian.
Thanks
Posted by In The Name Of The Fada | 12.08.09, 15:44 GMT
Sean from Northern Ireland. you don't half talk some nonsense. Our economy is in no way linked to that of Ireland. Britain is in a much better economic position than Ireland. Therefore England, Scotland, Wales and Northern Ireland are in a much better position. You only place posts on here to cause trouble. I would ask the Belfast Telegraph to only show posts that are related to the topic and not the sectarian tripe that you and other small minded fools want to write. Moron.
Posted by Get a life | 12.08.09, 14:10 GMT
this could be very bad news for the property market north of El Passo as like it or not the economy here in the north is very much linked with the rest of the country that we live in ie Ireland than it is with Britain.
Posted by sean from co down Ireland | 12.08.09, 06:49 GMT