The Isle of Man's High Court has ordered local businessman Sam Alder to repay bank loans totalling almost £2.6 million.
Mr Alder, a qualified accountant, was sued by Lloyds TSB Offshore as guarantor for funds lent to development company Slegaby Estates in 2008.
The court dismissed defence claims that the bank was guilty of 'imprudent lending' for the company's farm conversion scheme in Onchan.
Lloyds TSB Offshore Ltd had asked the court to strike out defences put forward by Slegaby Estates and Mr Alder, a director of the company who acted as guarantor for the bank loans.
The firm claimed the bank was guilty of imprudent lending, on the basis it knew there was no prospect of the loan being repaid if the building scheme was unsuccessful.
The high bailiff struck out that defence and dismissed any suggestion Mr Alder, who had control over the company, came under undue pressure to guarantee the loan.
The High Bailiff allowed summary judgment in the case, paving the way for the bank to claim almost £2.6 million on a joint and several basis against Sam Alder and his company, and also to recover legal fees and interest.
Mr Alder is the former chairman of the King William’s College board of governors, a former director of 3FM radio station and he was also executive chairman of the Isle of Man Arts Council.
In 2009 he was awarded an honorary doctorate of arts for philanthropy and services to music by City University, London.
He managed acts such as T-Rex, Emerson Lake and Palmer, Bryan Ferry and Roxy Music and Brian Eno.