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.