THE unsecured creditors in Clondalkin Inn, in liquidation since 1986, are likely to receive between 15p and 60p in the pound. This follows a High Court hearing which freed funds held in Lombard & Ulster Bank.

The initial statement of affairs' showed an estimated deficit of £301,000, but this sum did not include the funds in Lombard & Ulster, which arose from a sale of the Laurels public house before the liquidation took place. This had been Clondalkin main asset.

The liquidator, Mr Vincent Duignan, of accountants Duignan & Co, had these funds frozen in the High Court in 1986. Since then these have been the subject of a dispute between Agrippa Investments and Mr James Kennedy, the property developer owner of Clondalkin Inn. Agrippa Investments, a Belfast company, had bought the debt owed to Lombard & Ulster by Mr Kennedy.

"These liabilities had been purported to be secured under a guarantee from Clondalkin Inn," said Mr Duignan, in a letter to the creditors.

The High Court hearing earlier this month was to establish the validity of the guarantee and, if creditor status in any distribution by the liquidator. The hearing was between Agrippa as plaintiff and Mr Kennedy/ Clondalkin Inn as co defendants.

The agreement, forming part of the court order, directed that 55 per cent of the funds go to Agrippa and 45 per cent to the liquidator.

The agreement means that Mr Kennedy is not entitled to receive money from the liquidator for debts he had paid subsequent to the date of liquidation. This leaves more for the other creditors.

The funds in the bank amounted to £350,000 in 1986. With interest, they have grown to around £600,000.

The Revenue, a preferential creditor, owed £153,363, will be paid in full.