Anglo Irish Bank approved loan facilities of €84.5 million in August 2006 to property development company Maryborough Construction Holdings to fund the site acquisition and completion of a major shopping centre and residential complex in Portlaoise town centre, writes Simon Carswell, Finance Correspondent.

The company, which was put into examinership on Wednesday, drew down €23.2 million from Anglo Irish Bank. It is estimated that a further €65 million will be required to complete The Maltings, the 44,000 sq m project, the company's first development project.

The firm, which was set up in 2003, had been in talks on the purchase of a 37-acre site for a hotel and residential development. The company valued The Maltings site at €36.5 million as of October 27th.

The High Court appointed Ken Fennell, of Dublin accountancy firm Kavanagh Fennell, examiner to Maryborough, which has registered offices at Birchgrove, Roscrea, Co Tipperary.

The court heard Mr Fennell had agreed non-binding heads of agreement with a prospective investor who would buy the company, refinance the project and repay Anglo Irish Bank. The case will be heard again on December 7th when Mr Fennell is due to say whether his talks with the investor have been successful.

The company's directors petitioned for the appointment of Mr Fennell, expressing confidence that, with the court's protection, they could reschedule the company's liabilities and that all or a substantial part of its business could be saved as a going concern. The company told the court that talks to sell the business and its undertaking had already commenced before the appointment of the examiner.

Anglo Irish Bank opposed the appointment of the examiner, which was supported by other creditors. The Revenue Commissioners took a neutral stance in the case.

Maryborough said it ran into difficulties on The Maltings by over-relying on loans from Anglo Irish Bank to fund the project and over the failure to sign up an anchor tenant in the shopping centre. The company said that because it could not draw down more money from Anglo Irish Bank, it could not continue the Portlaoise development and had become increasingly concerned at the delays on the project.