“That at the very least is an abuse of process”

Despite the previous High Court ruling, and the rejection of an appeal at the Supreme Court, today the Irish High Court allowed 7 companies in the Liam Carroll controlled Zoe Group, which owe €1.2 billion, to proceed with their second application for court protection. From the RTÉ report, “Mr Justice John Cooke deferred setting a date for the hearing and formally issuing his detailed reasons until Monday morning.” The assessment of Lyndon McCann, SC for ACC Bank, is worth considering.

Lyndon McCann, SC for ACC Bank, said a ‘tactical and strategic decision’ had been taken by the Carroll group to withhold evidence relating to its business plan and property valuations on the first petition for examinership. He described this as a bad decision and the attempt to introduce the previously withheld business plan was ‘an abuse of the process of the court.’ Mr McCann also described the content of the letters from the financial institutions as ‘frankly pathetic’.

Back to economist Karl Whelan

Why would the banks do this? Why would they extend further money to a clearly failing developer with a fanciful survival plan? The only possible answer is these banks were determined to maintain the illusion Carroll would one day pay back the money he owed. And the reason for this illusionist act? Nama.

Nama.. and its €90billion of toxic debt.

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  • Scaramoosh

    “Cutting themselves into deals is how the new deal makers are amassing wealth.

    “There are good financing houses here, Anglo Irish and the others, who over the past 10 years have understood the entrepreneurial model,” said O’Leary.

    “There is a lot of first generation money in the country and it tends to be more entrepreneurial in outlook, more willing to take a risk.”

    This quoet is taken from a 2006 article that looked at the new urbane breed of deal makers that was emerging in Ireland;

    http://business.timesonline.co.uk/tol/business/article713993.ece

    The article makes reference to one Niall McFadden, of whom it was recently written in the Irish Independent;

    “SHARES in Boundary Capital, the listed investment group founded by financier Niall McFadden, slumped 54pc in Dublin yesterday after the firm said that the outcome of discussions with Anglo Irish Bank to rearrange and extend its debt facilities remains uncertain.”

    http://www.independent.ie/business/stocks-markets/boundary-slumps-as-doubt-hangs-over-anglo-debt-talks-1799183.html

    The current round of stories represent the tip of the iceberg. The problem is that there is nobody, capable, able or willing to expose the rest of the iceberg to the light of day. As ever in Ireland, the revelations will be on a drip, drip basis, with who knows, a ten year commission looking in to where it all went wrong.