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Sligo's Shane Filan quits Westlife companies

Rumours circulating yesterday that Sligo's Shane Filan had quit Westlife proved to be false and unfounded. However It has been confirmed that the band's leading singer has resigned from two companies that oversee some the profits made by the international stars.

Documents registered with the Companies Registration Office show Filan resigned from two of the bands companies, Bluenet Ltd and Blacknight Ltd. The resignations took place  on the same day last November just before he left Ireland to live in the UK.

Filan, who is understood to have debts as high as €23m, has already applied to the UK courts for an Individual Voluntary Agreement, which would prevent banks here from forcing him into bankruptcy for at least a year. The decision of the courts is still awaited.

Legal sources suggest he may be trying to distance himself from the Westlife companies should a receiver be appointed to his debts. The other Westlife members are directors of both companies.

A receiver has already been appointed by Ulster Bank to Shafin Ltd, a development company set up by Filan and his brother Finbarr.

Bluenet Ltd gets its revenue from tour income, including live performances, merchandising, tour fees and recording royalties. The last set of accounts published show a profit of €450,069 in 2010, which coincided with the release of the multi-platinum winning Where We Are album and the 36-date Where We Are tour. Blacknight Ltd, which makes money from performance related broadcast licence income, also made a profit.

Bluenet Ltd is currently a primary company within the bands commercial endeavours as the band undertakes its final tour which will culminate next month in Dublin's Croke Park. It is understood that the profits from this tour should be  higher than any previous tour.

Should receivers be appointed to any Westlife companies of which Filan is a director or shareholder it could prove to be disastrous for the other band members as legal action could drag on for years totally wiping out the value of those companies in legal costs.

Following last weeks disclosure by SligoToday.ie that Sligo architects Vincent Hannon & Associates have lodged a High Court case against Shane Filan and his brothers, Finbarr and Peter. Architect Vincent Hannon of Vincent Hannon & Associates told the Irish Mail on Sunday: ‘Shane has left the area and since then we have had no contact with him. His brothers are still here left dealing with stuff but we have had no joy with them, so we have had to go legal.’

Sligo law firm, Callen Tansey is representing the architectural company.

Fresh High Court action against the developer brothers Shane and Finbarr was issued last month by another Sligo company Trio Foods. This action was taken against another company, the Nalif Partnership which is controlled by the Filans.

Trio Foods formerly had a depot on a site in Ballinode, opposite IT Sligo, on which Shane and Finbarr Filan (trading as The Nalif Partnership) had planned a €5m development to include student accommodation, a supermarket, two take-away restaurants, medical centre, offices and a coffee shop.

No comments or statements have yet been released by Westlife, Shafin or the Nalif Partnership on the latest developments.

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