ACCBank has overturned a bankruptcy order made against a Wicklow businessman, who owes the bank €5.5 million but was made bankrupt in Belfast by a creditor owed little more than €1,500.
The judgment by the High Court in Belfast against Seán McCann, who gave personal guarantees to ACC for loans seven years ago to develop more than 11 acres of land in Killorglin, Co Kerry, was handed down in late January, but published only yesterday.
The bank, which brought a creditor’s petition to bankrupt Mr McCann before the High Court in Dublin on August 22nd last, disputed his contention that his centre of main interest lay in Belfast or that the High Court in Belfast had jurisdiction over him.
Rent arrears
Mr McCann was declared bankrupt in Belfast on foot of a creditor’s petition of August 20th brought by Fleur Jackson, who claimed for £1,401.50 due in rent arrears for a sub-let of a property in Botanic Court in Belfast.
On July 2nd last, she completed a hand-written statutory demand for the monies owed, though Master Kelly, in his judgment issued on January 28th, said the demand was “somewhat incomplete and imperfect”.
He found that Ms Jackson’s right to rent the Botanic Court property was unclear because the property is listed as a business premises, while no other evidence had been produced by her at the August court hearing “aside from the incomplete affidavit of service”.
Besides his debts to the ACC, Mr McCann owes €1.03 million to the Bank of Ireland “on foot of a judgment mortgage against some 15 properties which [he] claims are worthless. AIB is owed €332,000 by him. One US creditor is owed €242,000”.
A number of other creditors are owed €103,000, “bringing his indebtedness in the Republic of Ireland to around €7.2 million as compared to the petition debt of £1,401.50 in Northern Ireland”, said Master Kelly.
McCann (55), with three children, told the court he had left the family home at Killegar Farm, Enniskerry, Co Wicklow, and moved his business and personal interests to the North from November 2011, following marital difficulties with his wife, Freda.
Not formally separated
However, Master Kelly noted that he returns to Wicklow every weekend, while his affidavit stated that the couple are “not formally separated or seeking a divorce, but remain married for the sake of our young children”.
The Belfast bankruptcy petition was lodged in Ms Jackson’s name so “that Mr McCann will be subject” to jurisdiction by the NI High Court “a day before a bankruptcy application was to have been made by the ACC in Dublin”. However, Master Kelly found Mr McCann had only “a very tenuous link” to Northern Ireland and had not met “even the lower standard of proof” required to prove that his centre of main interest lay in Belfast.
