Judge makes ruling on personal insolvency case that will have consequences for around 100 more

Courts cannot approve what are known as 'debt for equity swaps' in personal insolvency arrangements unless there is consent from the relevant secured creditor, a High Court judge has found.

In a test case, Mr Justice Denis McDonald held there are no provisions in the 2012 to 2015 Personal Insolvency Act that would allow the court approve a Personal Insolvency Arrangement that proposes debt for equity swaps without the consent of the creditor.