asked the Minister for Finance why a loan of £450,000 intended for Castleguard Textiles Limited, was paid by Fóir Teoranta to Seafield Gentex Limited; why this amount was not subsequently paid over to Castleguard; and the steps he intends to take to recover the money from Seafield Gentex.
Written Answers. - Textile Industry Loan.
72.
I understand that while the loan from Fóir Teoranta referred to by the Deputy was intended to meet urgent financial requirements directly arising out of the serious losses being incurred by Castleguard Textiles Limited it was sought by the parent company, Seafield Gentex Limited, and issued to that company. As regards the second part of the question I am unable to say whether or to what extent the loan moneys were subsequently paid directly to Castleguard by its parent company. I am informed, however, that these funds were used to reduce the level of indebtedness of the Seafield Gentex group of companies which had significantly and critically increased as a direct consequence of the drain on the group's liquid resources arising from the losses being incurred at Castleguard.
In relation to the recovery of the money the position is that the loan agreement has been entered into by Seafield Gentex and that company remains liable to repay the loan to Fóir Teoranta.