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Wednesday 1 October 2014

Creditors choose committee to oversee Filan debt

Published 23/01/2013 | 05:00

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Banks and businesses owed €18m by Westlife's Shane Filan, pictured right, met in Dublin yesterday to appoint a committee to oversee attempts to get back as much as possible from the bust singer to pay off his debts.

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The Sligo-born star was declared bankrupt in England last June, after the collapse of an Irish property development business owned by Shane and brother Finbarr.

The creditors' meeting held at the Dublin offices of accountants Grant Thornton was one of the final stages in the bankruptcy.

A team of the London-based accountants overseeing Shane Filan's case there flew to Dublin for the low-key event.

They met a handful of representatives of the lenders and creditors affected – including Bank of Ireland, Ulster Bank and IBRC.

The meeting was held in private and took around two hours.

The lenders, who stand to lose millions, were asked to pick a committee to oversee the final stages of the bankruptcy. They were also due to look at ways of possibly getting a share of Shane Filan's future income, even after he's supposedly free of the bankruptcy in June this year.

That would mean securing an order from courts in the UK, however.

During the boom, his property business borrowed millions from banks to buy sites in Sligo and Leitrim which today are worth just a fraction of the amounts owed.

In one case, a site at Carraroe in Sligo is valued at €25,000 today but has a mortgage of €2.4m on it.

Like many builders Shane Filan personally guaranteed the company loans, so when the business went bust the banks turned to him for the cash.

Irish Independent

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