Anglo Irish Bank has settled its High Court action against a group of investors over their failure to repay some €6 million advanced for a failed fishing venture.

Mr Justice Peter Kelly was told yesterday that the case had been settled on terms which include each of the 17 investors agreeing to repay the bank €329,000 each, making a total of €5.61 million.

The dispute dates back to 2002, when a group of investors secured two loans from Anglo Irish Bank, totalling close to €9 million, to finance the purchase of a fishing vessel.

The investors were not fishermen by trade, and the venture was primarily designed to allow them to avail of capital allowances for wear and tear of the boat.

The business quickly ran into trouble, and was no longer economically viable by September 2004, according to court documents.

The investors had taken out a bond which gave the boat a residual value of €4.5 million.

However, when they went to cash that, they found the bond issuer was in liquidation.

In August 2005, Anglo asked for both loans to be repaid, but while the smaller loan for €2.8 million was paid, a €6 million loan remained outstanding.

All 17 investors, the court was told, had consented to the settlement.

Sixteen of the investors have to pay up by July 31st, while one investor has to meet an August 17th deadline.

Mr Justice Kelly said the court would receive and file the settlement which provides that, if the money is not paid by the deadlines laid down, judgments will be entered against the defendants.

Mr Justice Kelly had been due to give judgment in the case this week.

However, he agreed to adjourn judgment to yesterday after being told a settlement was almost finalised.

Yesterday, he was asked, and agreed, not to give judgment in the case as settlement had been reached.