Updated: 03/05/12 : 08:03:38Printable Version
It has just been announced this morning (Thursday) that a receiver [corrected from earlier printed error - examiner]
Patrick Horkan from KPMG has
been appointed by Ulster Bank with the past few days to Shafin Developments, a company
controlled by Sligo's Westlife member Shane Filan and his brother
It is understood that the debt involved exceeds €20m. Speculation over
the amount of the company's debts ranged from €4m to €23m. The debts are
partially secured by personal guarantees from Mr Filan and family
The unwelcome news of the receivership comes as Westlife prepares for
their farewell tour which culminates with sell out gigs at Dublin's
Shane had moved his family to the UK prior to Christmas and is currently
seeking protection from the British courts to secure a five-year
repayment plan to placate the Bank of Ireland (BoI) and Ulster Bank
BoI was one of several banks that helped fund Shane’s massive property
speculations during the boom, which aimed to create a number of housing
and commercial developments in Leitrim and Mayo. It is Shafin's biggest creditor.
Ulster Bank was recently given permission by the High Court to fast-track
the case – and also to serve summonses on Shane’s agents or family.
During the Celtic Tiger boom, Shafin purchased several sites in Sligo
and surrounding counties, where further ambitious developments were
But the company, which borrowed millions from banks, has failed to
progress the sites despite obtaining planning permission for some of
The Filans also embarked on further property ventures funded by other banks such as Anglo Irish Bank.
Along the way, Shane and family members gave personal guarantees of almost €5m.
It is also believed that Shane's main earnings from 14 years with the highly successful band were ploughed into the development company with mortgages used to build personal properties.