The High Court has approved a personal insolvency arrangement (PIA) that will allow a 52-year-old man write off approximately €1.38 million in debt owed to a financial fund.

Under the terms of the arrangement, Alan Jenkins, who had debts of approximately €2.5 million, will see that sum reduced to zero after he agreed to surrender 10 properties he owns to his secured creditor Havbell DAC.

The properties are located mainly in various towns in the midlands, and in Dublin. The 10 properties will be sold off, with the proceeds going towards reducing his debt to the financial fund.

It is estimated that the sale of the properties, along with other terms of the PIA, will reduce the amount owed by Mr Jenkins by approximately €1.2 million.

Rented accommodation

Mr Jenkins a married man with an address at Newcastle, Tyrrellspass, Co Westmeath, will retain an 11th property he owns, a house at Stonebridge Park, Rochfortbridge, in Co Westmeath.

Under the terms of the PIA, Havbell DAC has agreed to release any interest it has in the Rochfortbridge property. The court heard that Mr Jenkins, who currently lives in rented accommodation with his wife, had derived all his income from the properties he owned.

He got into arrears due to the downturn in the economy and the collapse in the property market over a decade ago. Arising out of his debts Mr Jenkins applied, through his personal insolvency practitioner, for a PIA.

Better outcome

His adviser said the insolvency arrangement, which was accepted by his creditor, represented a better outcome for Mr Jenkins’s creditors than if he was adjudicated a bankrupt.

At the High Court on Tuesday, Mr Jenkins’s insolvency adviser, represented in court by Keith Farry, sought to have amendments made to Mr Jenkins PIA approved by the High Court.

He told Ms Justice Leonie Reynolds that, while a PIA had previously been approved by the High Court, the application to the court was necessitated due to a material change in circumstances.

The original length of the proposed PIA was 12 months, counsel said. However, it was now proposed that it would be extended to 27 months, counsel said. There was no objection to the amendment, the court heard.

Ms Justice Reynolds said she was satisfied to approve the amended PIA.