Marina guarantors face six figure bill as state pulls project

Date Published: 20-Apr-2011

A well-known Connemara businessman has asked local people to help him out as he faces possible Court action in relation to a guarantee he provided for a loan for a community based project.

Malachy Kearns who owns the Roundstone Musical Instruments Centre – known internationally for the bodhráns produced there – is among a group of people who guaranteed a loan for preparatory work for the development of a marina in Roundstone Bay.

The Roundstone group were acting in a voluntary capacity and guaranteed the repayment of a loan of over €100,000 in the belief that Government grants would be forthcoming.

They are now stuck with heavy personal bills following confirmation by the Government that it will not give any money for the proposed marina.

The Department for Community, Equality and Gaeltacht Affairs has written to the group telling them that the marina project didn’t have the business potential to warrant grant aid from the State.

The saga in relation to the proposed marina has gone on for a decade and it leaves four people with a financial mess on their hands.

Malachy Kearns read out the contents of a letter from representative for the Allied Irish Bank dated April 13 2011 in which he is asked to repay €25,000 as a result of his personal guarantee for a community loan in Roundstone.

He was asked to give details about his plans to repay the money and was told that any resources which he had in that bank could be used against the outstanding loan. He was also threatened with legal proceeding and possible Court action unless he pays up.

See full story in this week’s Connacht Tribune.