High Court Approves Credit Union Liquidation

The High Court has today approved the appointment of a provisional liquidator to Berehaven Credit Union in Castletownbere, County Cork.

The Central Bank applied for the action as it deigned the union to be no longer viable. "Alternative options to resolve the serious financial difficulties at the credit union were examined but were found not to be feasible," a statement said.

The move follows serious financial difficulties at the union, which the Central Bank said was down to "poor governance, lending practices and a lack of internal controls, which the Central Bank has engaged with the credit union on in recent years in an attempt to find a resolution".

A statement from the Central Bank said its main objective was "to find a credit union based solution that maintains services in the local community. "In this case the Central Bank examined all available options, including a directed transfer to another credit union. However, while a transfer bid was received from another credit union, the financial support required was significantly greater than the estimated cost of liquidation.

"On this basis the liquidation of Berehaven Credit Union was the only option available. The Board of Berehaven Credit Union actively engaged with the Central Bank in seeking a resolution in recent weeks and did not oppose the appointment of a provisional liquidator."

Members of Berehaven Credit Union have been advised that they do not have to contact the union, as compensation payments will be processed automatically.

(IT/CD)