High Court approves first debt-for-equity insolvency arrangement

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

The High Court approved a personal insolvency arrangement for Neal Sweeney, a Co Meath businessman with debts of more than €2 million. The decision was the court’s first approval of an arrangement involving a debt-for-equity swap. His main secured creditor accepted a 41 per cent share in his family home, and the application was uncontested.

Under the arrangement, Promontoria Scarriff DAC will receive equity valued at €250,000 in the home, which was valued at €600,000. Sweeney will continue repayments on his €350,000 mortgage. The report said the arrangement would allow him and his family to remain in the home and return to solvency.