Fund objects to businessman’s proposed insolvency arrangement

Promontoria Ltd, which says it is owed €64 million by the debtor, is objecting to Mr Clarkson’s PIA being approved on grounds it is prejudiced by the proposed arrangement. If the PIA is approved by the court it will allow Mr Clarkson, who was involved in property development, to return to solvency.

At a creditor’s meeting earlier this year the PIA was approved by the majority of Mr Clarkson’s debtors, mainly financial institutions. The debts are due to property investments by Mr Clarkson made before the banking crisis and property crash of 2009-10. Included in the proposed PIA is a lump sum of €100,000, which has been available to the businessman’s debtors. The monies have been provided by a relative of Mr Clarkson. He will also retain his family home under the PIA.

His Personal Insolvency Practitioner , Mitchell O’Brien, said Mr Clarkson’s debtors will do better through the PIA than if he is made a bankrupt. The lump sum would not be available in the event Mr Clarkson was adjudicated a bankrupt. Mr Clarkson has over the last number of years worked with his creditors and has implemented a sale strategy in respect of properties he had an interest in. The case was mentioned before Mr Justice Denis McDonald on Monday.

Promontoria, represented by Eoin Martin BL, sought an extension of time to file its objection to court approval of the PIA. In a sworn statement, Promontoria said its objection was filed outside the permitted 14-day period because the person handling the case on its behalf mistakenly believed they had until March 1st last to file the objection.

Mr Justice McDonald, noting the PIP’s “prudent” attitude towards the application, said he would grant the extension. The judge said there was no automatic entitlement to such an extension, adding he was not satisfied with the “broad brush” reason advanced by the fund in its sworn statement as to why the objection was not filed on time. The matter will be mentioned before the court later this year.

Source: Loan Digest (loandigest.net)

Ireland Latest News, Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Sean Quinn’s family used group as ‘personal bank’ to fund their lifestylesHigh Court told family members extracted €1.95bn, including €1m for a wedding 🙊 oops. Bit of corporate governance training in order? I wish i had had access to that personal bank fund And yet there are fools who support this rotten lot
Source: IrishTimes - 🏆 3. / 98 Read more »

Subscriber Only: Aged 50 or over? Consider your retirement fund options nowIf you haven’t yet thought about what to do with your retirement fund, here’s some advice
Source: IrishTimes - 🏆 3. / 98 Read more »

Decision to be made on future of Local Link bus serviceA decision will be made at the end of this month on whether to continue to fund the Local Link evening bus service which runs at weekends in rural areas. a great little town butlersbridge great people living there justhannnahrose JimmyDillane ConorODwyer94 jamescuss years ahead of the rest of the country....ClassWeeCountyHi Because it's far more important to shift that funding to something in Dublin. Anything. As long as it's in Dublin. F*ck the rest of the country.
Source: rtenews - 🏆 1. / 99 Read more »

Sean Quinn's family used Quinn group as 'personal bank'Lawyers for former Anglo Irish Bank claimed they used the cash to buy property and fund their lifestyle expenses
Source: IrishMirror - 🏆 4. / 98 Read more »

Government announce legislation will be made to change gambling laws in Ireland | JOE.ieThe subject was discussed in the Dáil on Wednesday, as well as the establishment of a social fund for gambling addiction research. Eoin_Murdock jamielynch71 DayV_Cee it’s over buddy
Source: JOEdotie - 🏆 31. / 51 Read more »