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Receiver appointed to Westlife Shane Filan's company

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 Finbarr.

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 members.

The unwelcome news of the receivership comes as Westlife prepares for their farewell tour which culminates with sell out gigs at Dublin's Croke Park.

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 (UB).

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 planned.

But the company, which borrowed millions from banks, has failed to progress the sites despite obtaining planning permission for some of them.

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.