Westlife singer Shane Filan’s property company Shafin Developments has gone into receivership.
Ulster Bank has appointed Patrick Horkan of KPMG as receiver and manager to the company which is jointly owned by the singer and his brother Finbarr.
Shafin Developments borrowed from Ulster Bank in 2006 in respect of property in Co Leitrim.
The company’s assets include four residential properties and a partly-developed site at Dromahair, Co Leitrim. The company also has an interest in a site at Carraroe, Co Sligo.
Shafin Developments, which Filan once referred to as a “nice little pension plan”, had run into serious financial difficulties, having accumulated losses of €3 million by the end of 2010 and bank debt of about €5 million.
Bank of Ireland is also pursuing the Filans for debt and was given permission by the High Court in April to fast-track the case.
According to reports, the 32-year-old singer and his wife Gillian have moved to England where he is in the process of entering Individual Voluntary Arrangement.
Westlife was toppled from this year’s the Sunday Times rich list due to the debts incurred by Filan through his ill-fated property speculation.
Last September, he sold his vintage Aston Martin in England for almost €400,000. Filan had bought the car for himself as a 30th birthday present.
Filan will tour with Westlife on the band’s farewell tour which begins this month, and reports indicate that his sights are now set on a solo career.