Ireland's largest bank, Allied Irish Bank (AIB), is part of a group of investors that has been left with a massive $300million property debt in Manhattan.
The Winthrop Realty trust is a group of investors that includes AIB, Deutsche Genossenschafts-Hypothekenbank and Hartford Financial Services.
The group invested $300million with the owners of the 80-acre Stuyvesant Town-Peter Cooper Village in east Manhattan.
The owners of the complex, Tishman Speyer Properties, failed to pay a $16.1million debt payment on January 8.
The owners have now handed over control of the property to its creditors.
AIB has a large presence in U.S. markets, it has a 23.5 per cent stake in MT bank and offers Irish investors the chance to invest in the US through it's AIB Capital Markets division.
AIB have not disclosed how much money it has invested in the Stuyvesant Town-Peter Cooper Village.
Originally built in the 1940s, the apartment complex provided 11,000 affordable housing units to World War II veterans.
The complex was bought in 2006 by Tishman Speyer Properties and BlackRock assets management for $5.4 billion.
Last year the property was valued at just $1.8 billion.
Earlier this month it was revealed that dozens of Irish developers and socialites borrowed tens of millions of dollars from AIB to buy property in New York.
It has since transpired that many of the luxury properties are currently in negative equity, and the bank has been forced to renegotiate the terms of the loans with ailing Irish developers.
The Irish accent voted sexiest in the world