{"id":210277,"date":"2025-12-01T21:26:11","date_gmt":"2025-12-01T21:26:11","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/210277\/"},"modified":"2025-12-01T21:26:11","modified_gmt":"2025-12-01T21:26:11","slug":"judge-approves-insolvency-arrangement-writing-down-farmers-e1-5m-debt-to-e20000-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/210277\/","title":{"rendered":"Judge approves insolvency arrangement writing down farmer\u2019s \u20ac1.5m debt to \u20ac20,000 \u2013 The Irish Times"},"content":{"rendered":"

A Co Westmeath<\/a> farmer\u2019s \u20ac1.5 million unsecured debt, arising from buy-to-let property investments, has been written down to under \u20ac20,000 as part of a personal insolvency arrangement.<\/p>\n

High Court<\/a> judge Ms Justice Nessa Cahill on Monday approved the arrangement for James McDonnell (52), a father of four children aged 11-17, of Prebaun, Belvedere, Mullingar.<\/p>\n

The application for approval, made by Mr McDonnell\u2019s Personal Insolvency Practitioner, Gary Digney, was moved by barrister Keith Farry, instructed by solicitor Nicola Nevin. <\/p>\n

Mr McDonnell, who works on the family farm and as a grounds maintenance contractor, has overall debt, including the outstanding \u20ac209,393 mortgage on the family home, of more than \u20ac1.7 million. <\/p>\n

His family was in the auctioneering business, which he used as a platform to begin purchasing buy-to-let properties, Mr Digney, of AAB Accountants (Ireland) Ltd, said in court documents.<\/p>\n

After taking investment advice, Mr McDonnell and his father believed some investment in the buy-to-let sector would be beneficial in the long-term and they purchased several such properties and a pub. The rental income initially covered most of the mortgage repayments and the remainder was topped up by Mr McDonnell and his father from their own income.<\/p>\n

Following the economic downturn, there were issues with tenants not paying rent and apartments lying vacant for long periods, the court heard. Receivers later appointed over the properties sold them at a substantial shortfall.<\/p>\n

The current market value of the family home, jointly owned by Mr McDonnell and his wife, was put at \u20ac460,000 with an outstanding secured mortgage of \u20ac209,393 owed to Bank of Ireland Mortgage Bank. Other assets included \u20ac5,000 in livestock and plant and machinery, required for farm use, and a pension of about \u20ac8,500.<\/p>\n

The PIA provides for the mortgage term to be restructured to 18 years. The interest rate will remain at the ECB variable rate, plus a 1.05 per cent margin. The mortgage loan balance will remain at \u20ac209,393 coming into effect of the PIA with estimated monthly repayments of \u20ac1,276.<\/p>\n

The PIA provides for the writing down of his \u20ac1.5 million unsecured debt to leave \u20ac19,791 available for unsecured creditors.<\/p>\n

Just over \u20ac1 million of the unsecured debt is owed to a financial fund, Promontoria Aran, under a demand loan facility. Most of the remainder is owed to Mars Capital Finance DAC arising from the property sale shortfalls.<\/p>\n

The debtor\u2019s total household income was put at about \u20ac3,773 per month with set costs amounting to about \u20ac2,190 and special circumstance costs \u2013 insurance and health costs \u2013 of \u20ac275. That left an available monthly contribution of some \u20ac455. <\/p>\n

A lump sum of \u20ac30,000 was available from savings and a loan from Mr McDonnell\u2019s mother, as the contribution over the 12 months of the PIA. <\/p>\n

The PIA was supported by the secured creditor but opposed by a majority of unsecured creditors at creditors meetings. <\/p>\n

Mr Farry said a bankruptcy scenario would be more beneficial to the unsecured creditors in that they would get a 5 per cent return as against a 1.5 per cent under the PIA. <\/p>\n

However, the court had to consider the interests of the dependent children, the fact the family home is jointly owned and there being no other considerable asset. No creditor had objected to the proposed PIA after they were served with the application, he said.<\/p>\n

Ms Justice Cahill said, on foot of the evidence and the overarching public policy of the insolvency regime, she would approve the arrangement.<\/p>\n","protected":false},"excerpt":{"rendered":"A Co Westmeath farmer\u2019s \u20ac1.5 million unsecured debt, arising from buy-to-let property investments, has been written down to…\n","protected":false},"author":2,"featured_media":210278,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[79,18,10476,19,17,19871],"class_list":{"0":"post-210277","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-eire","10":"tag-high-court","11":"tag-ie","12":"tag-ireland","13":"tag-westmeath"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115646430367033019","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/210277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=210277"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/210277\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/210278"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=210277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=210277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=210277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}