ACC Bank, which is seeking to have Liam Carroll's Zoe development group wound up, has admitted it wouldn't survive "without the present and future support of its parent group" Rabobank.
The lender has been aggressively pursuing developers such as Carroll in relation to debts owed to them.
The argument about its liquidity was one of ACC's main defences to a case heard by the Labour Court in relation to a redundancy programme, which forms part of the bank's efforts to reduce costs by 30%.
ACC stated that "the cost savings must be achieved so that the future for as many workers can be guaranteed".
The Labour Court said that the discussions between the bank and trade unions Siptu and Unite "have taken place against the background of profound economic difficulties experienced by the bank. The restructuring is considered vital, if the bank, and the employment which it supports, is to have a future."
The unions had said the bank's "serious financial position is due to its imprudent lending policies and the current downturn in the banking and financial services" and pointed out that it was part of a "highly profitable multinational banking group".
ACC responded by saying that the parent group had been as generous as it can.
ACC reported a loss after tax of €244m last year after it increased its loan impairment provision by €306.5m, mainly because of bad debts from loans to builders and developers.
The bank was bought from the state by Rabobank for €165m.
"The bank announced in mid-May a strategy to protect the viability of its business in the current climate and position it for the future.
"Rabobank is fully supportive of this strategy," ACC said last week.
The bank's staff voted last week on the Labour Court's recommendations, which included receiving eight weeks' pay for each completed year of service up to a maximum of 156 weeks.