A company director can write off more than €3 million in debt in return for paying just over €8,000 under a personal insolvency arrangement (PIA) approved by the High Court on Monday.
Mr Justice Alexander Owens approved the 24-month 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, that he has an interest in.
The proposal also allows Mr Reilly to retain his family home at Clanree Road, Donnycarney, Dublin, for which the mortgage will be restructured and extended.
Mr Reilly will also pay just over €8,000 towards his unsecured debts.
The court heard Mr Reilly is a married man with no dependant children.*
He owed money to trade creditors and financial institutions including Mars Capital Finance, Pepper Finance, Bank of Ireland, Start Mortgages and AIB.
On Monday the High Court heard Mr Reilly became insolvent and was unable to pay his debts as they fell due.
He sought the advice of personal insolvency practitioner Eugene McDarby and entered into the personal insolvency process.
Seeking approval of the scheme, counsel for the practitioner, Keith Farry, told the court Mr Reilly’s creditors will do “slightly better” under the proposed PIA rather than if he was adjudicated a bankrupt.
The unsecured creditors will receive a dividend of just 0.07 per cent of what they are owed under the arrangement.
There were no objections to the plan.
After considering the proposal, Mr Justice Owens said it was just and equitable to approve the PIA which, when completed after 24 months, will return Mr Reilly to solvency.
*This article was amended on Tuesday November 7th.
