Property developer allowed write off over €170m in debt in insolvency arrangement

The High Court has approved a Personal Insolvency Arrangement allowing a former property developer to write off approximately €170 million in debt. The 55-year-old developer, based in County Cork, established a property investment and development company roughly two decades ago, which accumulated significant liabilities following the 2008 economic downturn. Creditors including NAMA, Ulster Bank, Pepper Finance, Link Finance, and private individuals were owed substantial sums. Under the approved arrangement, the debtor will provide €80,000 to creditors, who will receive minimal returns on unsecured debts. Two properties located in Bundoran, County Donegal, and County Tipperary will be surrendered to secured creditors. The arrangement, which lasts twelve months, was supported by the clear majority of creditors at a meeting, with only one institution opposing it. Mr Justice Alexander Owens approved the arrangement, noting creditors will receive considerably better terms than if the debtor were declared bankrupt.