Shipping group warns of layoffs if bank sells off its €70m debt
A shipping company dating back to the 19th century said hundreds of jobs could be at risk if the courts do not stop Bank of Scotland (BoS) from selling its loan debt of almost €70m to a foreign hedge fund.
The Doyle Group, which is the holding company for a number of firms that provide various shipping and warehousing services at all major Irish ports, claims that the bank's attempt to sell the debt to a third party amounts to breach by BoS of a contract agreed between the parties last May. The court heard that the group was in the process of refinancing loans it held with BoS with Ulster Bank.
However, last month the group learnt BoS had entered into a second process concerning selling the group's debt to third parties. The group claims BoS is seeking to sell its debt to the Blue Bay investment fund.
The group claims it had been represented to BoS that no such assignments should happen. It fears that if the debt is sold to the hedge fund its assets could be stripped down and sold off.