AIB may call in Yates’ guarantees

THE prospect of AIB calling in personal guarantees from former minister and Newstalk broadcaster Ivan Yates over the collapse of Celtic Bookmakers have been heightened.

This follows documents lodged with the Companies Office showing that AIB has received just €1.5 million of the €6m it is owed by the business, with substantially all of its assets sold by receiver, Neil Hughes.

The betting shop chain went into receivership in January after AIB appointed Mr Hughes, of Hughes Blake accountants, as receiver.

In the aftermath of Mr Hughes being appointed, Mr Yates said: “Once the receiver has finished his work, there will be a residual debt [with AIB]. I’ll have to sit down with the bank and work that out.”

A receiver’s extract lodged with the Companies Office show that Mr Hughes took possession of 23 trading betting shops on January 4 and, by July 3, had sold the leasehold in all of the shops realising €2.095m.

The document confirms the purchasers as Boyle Sports, Ladbrokes, O’Mara Bookmakers, Bambury Bookmakers, Paul Lamb and Andy Doyle. It states that, from these sales, AIB received e1.5m, confirming that from July last, there remained a deficit of €4.5m in what the bank was owed by the defunct bookmaker.

Mr Yates provided a personal guarantee to AIB for the company’s €6m borrowings. Last January he admitted he was ‘fearful’ of losing his home in Enniscorthy. The home has been home to four generations of Yates and comprises 160 acres and the family dwelling.

Along with his income from Newstalk, Mr Yates also receives an Oireachtas pension from his 21 years as a Fine Gael TD for Wexford.

The figures show Mr Hughes has received €141,350 in fees, while legal fees totalled almost e100,000. As receiver, Mr Hughes also had to pay out €214,385 in “trading expenses” and e129,939 in employee claims.

The business was established in 1987 after Mr Yates opened up his first shop in Tramore, Co Waterford. When the business closed, the company was operating 47 shops and a number were closed down in the weeks after the appointment of the receiver.

Mr Hughes declined to comment. Mr Yates could not be contacted.