Meath developer has €14m Nama debt written off for €37,000 in court-approved plan

High Court reporters

A Co Meath man has had a €14 million debt owed to the National Asset Management Agency (Nama) written off for a €37,000 payment under a personal insolvency arrangement approved by the High Court.

Judge Nessa Cahill this week sanctioned the arrangement of Michael Murray (47), of Brownstown, Kilcloon. The arrangement allows Murray - a developer who was a director of several firms during the Celtic Tiger era – to keep his family home, valued at €750,000.

Personal insolvency practitioner Gary Digney, represented by barrister Keith Farry, instructed by Nicola Nevin & Co solicitors, applied for approval of the insolvency arrangement this week.

According to court filings, Murray had debts of €14.6 million, of which €14 million was owed to Nama.

Nama, was set up after the 2008 global financial crisis to take over risky commercial property loans from Irish banks.

Under the court-approved arrangement, about €37,000, provided by a family member of Murphy’s as a lump sum, will be paid towards the unsecured debts owed to Nama. This is the totality of payments to be made to Nama under the plan.

A secured debt of about €594,000 is outstanding in mortgage payments relating to Murray’s family home, owed to lender Pepper Finance Corporation (Ireland) DAC.

A restructured mortgage repayment scheme will see the debt repaid in full. A €200,000 lump sum payment provided by the family member will go towards the debt.

Murray has a monthly income of €2,477, according to accounts filed with the court, and reasonable living expenses of €2,188.

According to court filings, Murray was a director of several development companies, alongside his father, during the Celtic Tiger era.

Their business traded successfully until the financial crash. The companies were subsequently placed into receivership.