Court approves PIA allowing businessman to write off over €16m in debts owed to financial fund

Under the terms of the PIA, Kildare man will retain his family home, valued at €1.5m and his mortgage, of which just over €1m remains outstanding, will be restructured

Court heard business's problems were caused by the financial downturn and the company ceased trading due to it unsustainable debts.

The High Court has approved a Personal Insolvency Arrangement allowing a Co Kildare man to write off over €16m of unsecured debts owed to a financial fund.

The PIA was approved by Mr Justice Alexander Owens on Monday in respect of 54-year-old Dermot King, with an address at Ardreigh House, Bishopscourt, Straffan, Co Kildare.

The court heard Mr King owed financial fund Everyday Finance DAC over €17.2m.

Under the terms of the PIA, Mr King will retain his family home, valued at €1.5m and his mortgage, of which just over €1m remains outstanding, will be restructured.

Property assets he has an interest in, including an investment property in Rosslare, Co Wexford, and part of the land his family home is located on are to be sold to reduce the debt on the family home.

He will also continue to make mortgage repayments to Everyday on the family home for the next 25 years.

Another investment property in Athy, Co Kildare, which Mr King also had an interest in, will also be sold to help reduce his overall indebtedness.

As part of the PIA, Mr King will make a payment of €23,000.

After various fees and expenses are deducted from that amount, €13,000 will go towards his unsecured debts, estimated to be just over €16m.

The court heard Mr King got into difficulty arising out of the time when he was self employed and trading as DMK Property Limited between 2004 and 2017.

That business's problems were caused by the financial downturn and the company ceased trading due to it unsustainable debts.

The debts arise out of various commercial and business loans, over which personal guarantees were furnished, taken out to acquire various properties.

Arising out of his insolvency, Mr King, a married man who works as a manager for home heating oil distributors, sought the services of Personal Insolvency Practitioner John McCormack.

Mr McCormack put together a PIA, which is to be 12 months in duration, which when completed will allow Mr King to return to solvency.

At the High Court on Monday, Keith Farry Bl, instructed by solicitors Gibsons and Associates, for the PIP, told the court the applicant's creditors will do better under the proposed PIA compared to if Mr King was adjudicated a bankrupt.

Counsel said there was no opposition to Mr King's PIA being approved.

Mr Justice Owens, after considering the PIP and counsel's submissions, approved the arrangement.

The living expenses being sought by Mr King were not unreasonable, the judge said, and Everyday Finance was not being unduly prejudiced by the arrangement, he added.