Shares in AIB fell sharply on the Dublin market today as the bank reported increased losses in the first half of the year, with bad debts increasing over the period, The Irish Times reported. The bank's stock fell as much as 13 per cent in early trade before regaining some ground to trade 5.6 per cent down at 93 cent by 5pm. The bank recorded a pre-tax loss of just over €2 billion for first half of the year, with its Irish operations posting a €2.3 billion loss before provisions.

Ireland’s Financial Regulator has appointed independent consultants to review Ireland's credit unions in a bid to curtail rising bad debts and mounting losses in the sector, InsolvencyJournal.ie reported. The move comes amid fears about the scale of bad debt in the sector after it was revealed earlier this year that a number of credit unions around the State face serious solvency issues. Last week, the Central Bank and the regulator announced the appointment of Grant Thornton to carry out the large-scale review, which was requested by Minister for Finance, Brian Lenihan.

Cash flow problems remain rife among small businesses as banks continue to restrict credit, according to the Small Firms Association (SFA), The Irish Times reported. The representative group for small business in Ireland has repeated its calls for Government intervention, arguing in its autumn economic statement there is “clearly a market failure” in the provision of loans to small and medium enterprises (SMEs). One-fifth of its members have seen the amount of working capital available to them decrease in the last three months, said the SFA.

AIB’s pretax losses could be as high as €3 billion when the bank releases its interim results this week – a key week for the European banking sector as a range of banks provide updates on impairment charges, capital strength and cost reduction programmes, The Irish Times reported. The extent of the decline in the bank’s pre-provision operating profits and its update on impairments to development loans that have not been transferred to the National Asset Management Agency (Nama) are set to be under the spotlight on Wednesday.

The four-star Osprey Hotel and Spa in Naas has become the latest hospitality victim of the recession as failures in the sector continue to mount, InsolvencyJournal.ie reported. AIB appointed a receiver over Naas Developments Limited, the company behind the hotel, last week. The Leinster area appears to be bearing the brunt of the hospitality downturn and the latest appointment brings to eight the number of hotels which have entered receivership in the area in recent months.

Almost six months to the day after the Residence club on Stephen's Green was seized by the banks, a new owner has taken over the reins at the private members' club, InsolvencyJournal.ie reported. Businesswoman Olivia Gaynor Long bought the club from receiver Jim Stafford last week and the business will now be run by a recently-formed company called Molana Ltd. The new firm is wholly owned by Long, and lists public relations consultant Eugene Long as one of its directors.

State-owned Anglo Irish Bank is set to take control of department store Arnotts, The Irish Times reported. The bank is one of the backers of Arnotts' planned Northern Quarter development, which has been put on hold. The department store will come under the joint control of the nationalised bank and Ulster Bank. Anglo is believed to have told the EU of its intended move. Arnotts is said to have debts of more than €250 million. In February, Art Holdings, which owns Arnotts, was negotiating new banking facilities with the lenders.

Former Anglo Irish Bank chief Seán FitzPatrick, who owes creditors a total of €150 million and has assets of around €50 million, was in court as bankruptcy proceedings continued against him. Legal representatives for Anglo Irish Bank, which says it is owed up to €110 million, told the court it was seeking to have a “trustee in bankruptcy” appointed to the case. This trustee would replace a court-appointed official, Chris Lehane, who was assigned a fortnight ago to deal with Mr FitzPatrick’s assets and debts.

A host of Irish pubs collapsed over the past two years as the downturn ravaged the hospitality sector, InsolvencyJournal.ie reported. In March 2009, the Thomas Read Group entered receivership after an investment plan for the chain of pubs fell through. Earlier this year, the Waterford-based Tweedy Group, one of the largest pub groups outside Dublin, collapsed into receivership when the High Court rejected a rescue deal for the group and final orders have been called on hundreds of smaller pubs across the country.

Premier Hotels Ltd, one of the subsidiaries of hotel management firm Prem Group, is facing liquidation after failing to agree a deal on a six-figure rent arrears bill with one of its landlords, The Irish Times reported. The company, which was a joint venture with developer Paddy Kelly and his family until they exited last year, has called a creditors’ meeting for early next month to appoint a liquidator. The company’s latest accounts only show figures for the year 2007 when it lost €245,000 before tax.