BANK OF Scotland (Ireland) is the only bank among eight lenders owed €1.27 billion by Liam Carroll’s Zoe development group to say it believes the group has a reasonable prospect of survival, the High Court was told yesterday.

The bank, which is owed about €340 million, advanced €10 million – together with €20 million from Allied Irish Banks (AIB) – to pay off 86 per cent of the group’s trade creditors this year to prevent any liquidation threats against the group over outstanding debts.

The two banks are the biggest lenders to the group, accounting for almost €900 million of the group’s bank debts of €1.27 billion.

The State-owned Anglo Irish Bank signalled last week that the bank intends to lease and occupy a building at North Wall Quay in the north Dublin docklands for which it will advance €68 million to the Zoe Group to complete. Anglo’s head of operations confirmed its continued interest in leasing the first block at a meeting with KPMG last Saturday.

The bank has agreed to provide €8 million up-front to the Zoe Group to pay for the cost of “cladding” the building.

Bank of Scotland (Ireland) has advanced €50 million to the group since December 2008 and a further €16.6 million is available to be drawn down to fit out Transit House, a building at East Road in the north docklands in Dublin 3.

The bank has advanced €15.9 million to another Carroll group, Dunloe, to complete a building at Cherrywood, Dublin, that has been pre-let to the bank. Dunloe has an undrawn loan facility of €148 million, mostly for this site.

The court heard that Bank of Ireland, which is owed €122 million, and KBC Bank Ireland, which is owed €23.9 million, are the only banks whose interest bills are being repaid in full.

AIB, Bank of Scotland (Ireland) and KBC Bank Ireland support the appointment of an examiner to the group. Ulster Bank, Anglo Irish Bank and Bank of Ireland are not objecting, while EBS building society, which is owed about €9 million by the group, has made no representations in the case.