Court approves PIA allowing company director to write off €3m debt owed to financial funds

High Court reporters

The High Court has approved a Personal Insolvency Arrangement that allows a company director to write off over €3 million of debt owed to financial institutions for a payment of just over €8,000.

Mr Justice Alexander Owens approved the PIA in respect of 60-year-old Patrick Reilly, who under the terms of the agreement will put up for sale two properties in Dublin and one in Mountrath, Co Laois, in which he has an interest.

The PIA will also allow Mr Reilly to retain his family home at Clanree Road, Donnycarney in Dublin 5.

Under the terms of the PIA, which is to be 24 months in duration, the mortgage over the family home is to be restructured and extended.

Mr Reilly will also make a total payment towards his unsecured debts of just over €8,000.

The court heard that Mr Reilly is a married man with no dependant children.

He owed money to financial institutions and funds, including Mars Capital Finance, Pepper Finance, Bank of Ireland, Start Mortgages, and AIB, as well as trade creditors.

On Monday, the High Court heard that Mr Reilly became insolvent and was unable to pay his debts as they fell due.

As a result, he sought the advice of Personal Insolvency Practioner (PIP) Eugene McDarby and entered into the personal insolvency process.

Seeking approval of the scheme counsel for the PIP, Mr Keith Farry Bl told the court that Mr Reilly's creditors will do "slightly better" under the proposed PIA compared to if the applicant was adjudicated a bankrupt.

Under the PIA, the unsecured creditors will receive a dividend of just 0.07 per cent of what they are owed.

There were no objections to the proposal to approve the PIA.

After considering the proposal, Mr Justice Owens said it was just and equitable that the PIA, which when completed will see Mr Reilly return to solvency, be approved.