Courts / Meath / Report

First insolvency arrangement involving "debt for equity" swap is agreed

Date
2020-01-20
Stage
Hearing Or Decision
Primary locality
Navan
County
Meath

Summary

The High Court approved a Personal Insolvency Arrangement for Neal Sweeney of Liscarton House, Navan, who owes over €2 million. The arrangement is the first approved by the High Court to involve a debt‑for‑equity swap. Sweeney's main secured creditor, Promontoria Scarriff DAC, accepted a 41 % share in his family home, valued at €600 000, in exchange for the debt. Other creditors include Promontoria Finn Ltd and Cabot Finance Ireland Ltd. The debt arose from arrears on the mortgage of the family home and residual debt from a previously sold property. Sweeney, who now works in the building sector, will continue to repay the €350 000 mortgage. The decision was made by Mr Justice Denis McDonald and was not contested by the creditors. The case is part of a broader trend of debt‑for‑equity swaps pending before the High Court.

Who, what, where, when and why

What: Report matter: First insolvency arrangement involving "debt for equity" swap is agreed. Procedural stage: hearing_or_decision

When:

Places mentioned

Court Venue
  • The High Court
  • High Court
Facility
  • Liscarton House
Residence
Secondary Mention

Topics

Stage Hearing Or Decision

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