Homebuyers seek refund on their deposits

7th July 2009

Homebuyers who lost deposits of up to €20,000 on apartments after a development company collapsed have asked the High Court to increase their refunds under a survival plan. The High Court has heard the report from the examiner appointed to Laragan Developments on a scheme of arrangement for the company which is part of the Hanley Group. The court was told the company has a deficit of up to €45m.

Lawyers for the examiner appointed to Laragan developments disclosed how the company has liabilities of €147m, the bulk of this is loans of €101m from its parent company the Hanly Group and Alan Hanly.

The examiner has asked the Hanly Group to step aside as the biggest creditor to allow a scheme of arrangement to be put in place. The examiner proposes that those who lost deposits on properties in Santry and Carrickmines should receive only 1% back under a survival plan for the company.

However depositors have objected to the scheme and say they are being treated unfairly. They want the High Court to change their status as creditors which could mean they receive 6% in refunds. One depositor told the court to be offered a 1% refund was 'an insult'. Many said they had lost their savings and could no longer qualify for a mortgage. The case is ongoing.