Tony O’Reilly applies for bankruptcy in Bahamas

Former billionaire Tony O’Reilly was at the centre of an insolvency case in the Bahamas last night, trying to get protection from his creditors.

The former rugby star and media tycoon, who was for decades Ireland’s richest man, saw his wealth wiped out after pumping money into the ill-fated Waterford Wedgwood company and having his shares in Independent News & Media collapse.

Mr O’Reilly, who has been resident in the Bahamas since the 1990s, has already sold off a great deal of his property to pay off his debts.

After AIB secured a judgment of €22m against him, Mr O’Reilly was forced to sell his house on Dublin’s Fitzwilliam Square and part with a lot of his beloved art collection.

He also sought to sell off his holiday home, Shorecliffe House, a 3,500sq ft majestic pile near Goleen, Co Cork for €2.75m, but eventually had to settle for €1.5m.

However, he is taking the bankruptcy case because he still owes millions, much of it to a number of banks.

Mr O’Reilly, 79, who married Chryss Goulandris in 1991, is having the case heard in front of Justice Milton Evans in the Supreme Court of The Bahamas. AIB lawyers are asking Justice Evans to strike out the original and amended petitions from his legal team, claiming that the proceedings were not properly placed before the court, and a lack of inherent jurisdiction.

The former tycoon is looking for a formal agreement with his creditors in the country’s courts and is being represented in this case by John FK Delaney QC.

On foot of an original court application, the Bahamas decided to appoint an interim receiver in O’Reilly’s case.

The hearing under way last night was to decide if the court would proceed to the next step of ‘composition’ with his creditors.

If Justice Evans agrees, it becomes effectively a bankruptcy or personal insolvency arrangement.

Editorial: 16