THE DUBLIN Docklands Development Authority (DDDA) agreed to buy 51 apartments from Liam Carroll’s beleaguered Zoe development group, which is appealing the High Court’s rejection of its rescue plan to the Supreme Court for the second time this week.

The group cited the DDDA’s purchase of the apartments as one of the measures in the survival plan proposed to the courts.

The group told the High Court that the purchase of the apartments at Castleforbes Square and Northbank in the docklands would generate €10.9 million in sales.

The court was told that contracts were issued to the DDDA but were not yet signed. The group had 815 completed residential units at August 13th, 2009.

Zoe is appealing a High Court ruling rejecting an unprecedented second bid for protection and the appointment of an examiner.

Allied Irish Banks (AIB), which is owed more than €500 million by the group, and Bank of Scotland (Ireland), which is owed about €340 million, are the two largest lenders to the insolvent group.

AIB agreed to lend Zoe €27.3 million from August to the end of the year to repay trade creditors.

The group plans to pay creditors €13.9 million during the remainder of this year, almost €2.5 million in 2010 and €205,000 in 2011. AIB provided €20 million and Bank of Scotland (Ireland) €10 million to settle with creditors to stop any threats to wind up Zoe companies over unpaid debts. The banks are also rolling up interest owed by Zoe.

Part of the AIB loans were used to fund the group’s overheads.

Loans from the bank were also used to repay creditors of Orthanc, another Carroll-controlled group.