“these are grossly insolvent companies”

Afer their lengthy, and successful, legal action against Liam Carroll’s Zoe Group, the Dutch-based ACC Bank has begun a Supreme Court challenge to a High Court approved ten year survival plan for the Fleming Construction Group. From the RTÉ report

ACC bank has begun a Supreme Court challenge to a ten year survival plan for the Fleming Construction Group. The bank is owed €21.5 million by one of the companies in the group which has overall debts of one billion euro. This morning lawyers for ACC bank argued that the ten year plan approved by the High Court last month is not within the terms of the legislation governing the examinership process. Senior Counsel Paul Sreenan said critical to the whole purpose of the legislation was the prospect of securing the survival of a company and not a roving commission to the courts to do anything they wish in an insolvency situation to save jobs. He said the hiving off of profitable parts of the group could not ensure its survival.

Also from the report

Last month the high court approved a scheme which it described as capable of turning around the fortunes of three companies within the group – John J Fleming Construction, JJ Fleming Holdings and Tivway.

The scheme provides for the sale of the group’s contracting arm and other assets to a new company. The banks would have control of the property development side which is focused on sites in Sandyford in Dublin.

However lawyers for ACC said its main debtor was Tivway and the asset over which it had a fixed charge, the Sentinel building in Sandyford, was now worth between half a million and one million euro for a debt worth €21 million.

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  • Scaramoosh
  • aquifer

    Interesting to see if ACC get any more than a few cents in the Euro out of all this.

  • @aquifer they deserve a medal for keeping the NAMAtocrats under pressure

  • Mack

    Scaramoosh –

    I don’t get the point?

    This is the reasoning behind the severe budgetary cuts, only lunatic would make these kinds of deflationary adjustments in a depression if they didn’t have too.

    Protecting the Irish banks is lunacy – underwriting all their debts is mad.

    Colm McCarthy in this weeks SB Post..

    The exchequer costs of the bank rescue need to be minimised ruthlessly, and any opportunities to impose cost on bond-holders exploited in full when the guarantee runs out in September next year. Compensating providers of risk capital to failing businesses infuriates taxpayers, and gives capitalism a bad name. In approaching bank re-capitalisation next year, there should be no nervousness about revealing fully the capital losses which have occurred.

    http://www.sbpost.ie/commentandanalysis/we-need-to-know-the-cost-of-sorting-out-the-banks-46195.html