Courts / Kildare / Report

First Personal Insolvency Arrangment approved by High Court: creditors to be paid 1cent in the Euro

Summary

The High Court approved a Personal Insolvency Arrangement for 71‑year‑old Tony McAuliffe, a retired businessman with €10 million in liabilities. Under the 2012 Personal Insolvency Act, the judge sanctioned a scheme that will pay creditors roughly one cent per euro owed. The arrangement was deemed approved because no creditors voted at a meeting held just before Christmas, giving the scheme automatic approval under Section 108. McAuliffe's creditors include Investec Bank, owed €8.56 million, and Kildare Credit Union, owed €163 000. His monthly pension of about €1,000 allows him to contribute €314 per month, totalling €103,700 over 12 months. A family loan of €100 000 is also available to pay creditors. The judge noted that the dividend under the PIA is higher than what creditors would receive if McAuliffe were declared bankrupt, and that bankruptcy costs are higher than the fixed costs of personal insolvency.

Who, what, where, when and why

What: Report matter: First Personal Insolvency Arrangment approved by High Court: creditors to be paid 1cent in the Euro. Procedural stage: hearing_or_decision

When:

• Christmas Other
• 2015-03-06 Publication

Places mentioned

Topics

Stage Hearing Or Decision

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Read the original CNI report