High Court approves insolvency for developer to write off €25m debt

Aodhan O Faolain

The High Court has approved a Personal Insolvency Arrangement (PIA) that will allow a property developer to write-off approximately €25 million of debt mainly owed to financial institutions.

Mr Justice Alexander Owens said he was approving the PIA that will allow Tony Diskin (44) to retain his family home in Churchfields, Coosan, Athlone Co Westmeath and allow him to return to solvency.

The court heard that Mr Diskin had been involved in property development, but had got into financial difficulties following the 2008 financial crash.

His main creditors included Bank of Ireland, Cabot Finance and AIB, which was owed some €14 million.

AIB had initially opposed Mr Diskin's application for a PIA.

However, the court heard that AIB's loan had been sold to financial fund Everyday Finance, which was not opposing Mr Diskin's PIA from being approved.

At the High Court on Monday, Keith Farry BL, for Mr Diskin's personal insolvency practitioner John Donnan, said the PIA will be funded with lump sum of €30,000 that had been provided from a third party.

Living expenses

This, less fees and charges that arise out of the PIA application, represents a dividend of 0.1 per cent to Mr Diskin's creditors.

Counsel said that under the PIA Mr Diskin's creditors will get a better return compared to if he was adjudicated a bankrupt.

Under the terms of the PIA, which is to last six months, Mr Diskin is to be afforded adequate living expenses.

Counsel said that Mr Diskin's family home is worth €395,000, with KBC Bank owed €75,000 on the mortgage.

That will continue to be paid down, counsel said.

In addition, counsel said that Mr Diskin's mother, Maurine, holds a second charge on the family home of €690,000, resulting in the property being in negative equity.

Under the PIA her debt will be written down to €180,000 and will be paid off over the next 15 years.

Counsel said that Mr Diskin, a married father with two young children, currently works as a manager for a property management firm called Diskin Enterprises Ltd and earns €2,300 per month.

Mr Justice Owens said he was satisfied the criteria required to allow the court to approve the PIA had been met.

The judge added that no party was formally objecting to the proposed PIA and formally approved Mr Diskin's PIA.