Golf resort owners anger at bank

Jim Treacy, owner of the Lough Erne Golf Resort in Enniskillen in Northern Ireland, has hit out at the bank for their decision to place the five star resort into administration.

Mr Treacy feels the bank acted too quickly when they placed the hotel and golf resort in administration last Thursday, and said that the "£20million of net borrowing is not a lot". The resort only opened in October 2007 and Mr Treacy believes he "brought [the] place up from absolutely nothing" and had achieved a lot in the short period of time, including the celebrity endorsements of Nick Faldo, who designed the course, and Rory McIlroy, who visited and played at the resort.

Administrators appointed to the resort have confirmed that they hope to avoid redundancies, honour existing bookings and secure new ones, and ultimately sell the hotel and golf course as a going concern.

Things could get worse for Mr Treacy, as some of the financing for the resort came from borrowing secured on his main retail business, a Supervalu supermarket in Dublin, which he may also now lose.

The case highlights a growing criticism by businesses that banks have become too aggressive in trying to recover debts and balance their books, which is resulting in viable companies struggling to get finance, or existing companies being stretched in order to meet tight loan conditions.

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