Nama 'Can Withstand' Collapse Of Developer's €2 Billion Group

The possible collapse of Liam Carroll’s €2.3 billion property empire will not derail the establishment of the National Asset Management Agency (Nama), according to the Department of Finance, the Irish Times reported. However, banking sources said the opposite. They warn that any significant insolvency will jeopardise the valuation model on which Nama is based. One of the state’s largest developers, Liam Carroll, was teetering on the brink of bankruptcy over the weekend after a High Court decision on Friday to lift the protection from creditors granted to one of his businesses, the Zoe Group, two weeks ago. The move could precipitate the collapse of the entire group – with reported debts of €2.7 billion – as its creditor banks seek repayment of their loans. The group’s banks, led by AIB and Bank of Scotland Ireland, are supporting Mr Carroll but are understood to be lining up to seek recovery of their debts if he is unsuccessful. AIB is owed €520 million and Bank of Scotland Ireland €348 million. It was an original application by ACCBank for the appointment of a receiver to the Zoe group over debts of €136 million which triggered the application for court protection. The department was adamant yesterday that a large receivership could be dealt with by the Nama process. Read more.