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AIB sues for €550m from Zoe builders

ALLIED Irish Banks has started court action in a bid to recover more than €550m in unpaid loans and interest made to companies in developer Liam Carroll's troubled Zoe Develop- ments building group.

AIB claims it has security for the loans via equitable mortgages on the basis of letters of undertaking from the defendant companies' solicitors and is seeking orders for the sale of a large number of commercial and residential property developments in Dublin and elsewhere.

Pending sale, the bank is also seeking orders appointing a receiver over the properties, which include developments at Barrow Street in Dublin, Charlotte Quay and Islandbridge.

Because of the state of the property market it is believed that should the bank succeed in having a receiver appointed, it would then likely continue to rent the affected properties.

It is claimed the companies have defaulted on repayments of the sums due, despite demands from the bank, and have failed to pay any amounts due under a loan facility agreement of March 2009.