A creditor's meeting has heard that debts of almost €1 million are owed by a Dublin private English language college which collapsed several weeks ago.

The Grafton College debts include more than €170,000 in wages and statutory redundancy payments owed to teachers and other staff.

They also include an estimated €45,000 listed as owed to a Mongolian recruitment agency.

Earlier this month, RTÉ News revealed how the college took substantial advance fees from young people in Mongolia in recent months, and spent the money.

The students were due to begin their courses in Ireland in January and had not yet travelled.

Their visas applications were subsequently refused.

By law, advance fees like these are supposed to be kept in a ringfenced account and returned if a visa application is unsuccessful.

But the owner of Grafton College, Saeed Rehman, told RTÉ News that "the money has been spent".

It closed suddenly late last month.

A Director's Estimated Statement of Affairs distributed at this morning's meeting lists debts including almost €60,000 owed to a Brazilian student agency.

As well as the €45,000 owed to a Mongolian recruitment agency there is an additional €30,000 plus owed to what appear to be other foreign recruitment or marketing agencies.

The debts listed include more than €400,000 owed to one of the company's directors.


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Mr Rehman attended this morning's meeting and spoke briefly.

Stephen Scott of Smith and Williamson has been appointed as liquidator.

The liquidator said that all employee claims were being dealt with as a priority, and that all creditors, including prospective students, were in the process of being contacted.