Milford Inn closure report:Unsecured creditors to lose out on 1.8 million euro

Unsecured creditors are set to lose almost 1.9 million euro following the closing down of the Milford Inn.
A meeting of creditors today was told that realisable assets from the sale of building and it land would realise just one million euro in today’s climate which would go against bank loans and other secured debts of 3.1 million euro.
Established in 1971, the Milford Inn employed about 55 people, though staff numbers rose to more than 80 during the high season.
The Blaney Group announced earlier this month that the 33-bedroom hotel had gone into liquidation.
The hotel, which operates under the Best Western brand,was forced to close due to financial difficulties.
Today at a creditors meeting the true extent of those financial difficulties were revealed.
Mr Tom O’ Brien, who has been appointed as the liquidator, estimated that the sale of the Hotel would realise 1 million euro -the company has debts of around 5 million euro.
Of that, almost 3.2 million is owed to banks and other secured creditors leaving them with a potential shortfall of over 2 million euro.
Unsecured creditors, including some of those that sold products or provided services to the Milford Inn, are owed 1.8 million euro and have no claim on the company’s assets.
Some of the biggest losers would be Donegal County Council which is owed 180 thousand euro in rates and directors who loaned the company almost half a million euro.