Paddy McKillen jnr Personal Insolvency Arrangement Faces Creditor Challenge Over €27.7 Million Debt
Paddy McKillen jnr has defended the financial documents submitted to the High Court for his personal insolvency arrangement (PIA) application, following scrutiny from two creditors owed a collective €11 million regarding his disclosures. Following a court session revealing he was deeply insolvent with liabilities totaling €27.7 million, McKillen jnr secured a 70-day protective certificate last month to shield him from creditors.
High Court Applications to Set Aside Protective Certificate
Lawyers for lenders Herbert Street Finance and Cabriz Finance told Judge Nessa Cahill that their clients issued applications to set aside the protective certificate. Herbert Street Finance is owed €2.3 million, while Cabriz Finance is owed €8.7 million. Bernard Dunleavy, counsel for Herbert Street Finance alongside barrister Niall Ó hUiginn, stated that his client’s application comes amid concerns regarding an alleged absence of detail in the information provided by McKillen jnr.
Counsel representing Herbert Street Finance highlighted a recent ruling where Judge Liam Kennedy dismissed McKillen jnr’s bid to cancel a bankruptcy summons from the same lender concerning that identical debt. Dunleavy described that judgment as noting inconsistencies and silence in information provided by McKillen. He submitted that his client observed this pattern again in the application for a protective certificate.
Complex Affairs and Family Creditor Claims
Dunleavy told the court that McKillen jnr’s affairs were complex, pointing to unusual features in arrangements with family members that elevate them in the list of creditors. Filings with the court indicate that McKillen jnr has financial obligations of €2.9 million to his wife Edel McKillen and €1.8 million to his mother Maura McKillen. Herbert Street Finance sought directions requiring McKillen jnr to provide further written evidence with appropriate disclosures relating to his affairs, adding that his side was prepared to reply within three days.
Martin Scanlon, barrister for Cabriz Finance, told the court that his client was agreeable to Herbert Street Finance’s suggestion. Keith Farry, appearing for personal insolvency practitioner Eugene McDarby, also agreed with the suggested directions. Farry stated his instructions were that McKillen jnr stands over the financial statement provided to the court, maintains it is truthful and accurate, and is happy to engage with further details required by creditors.
Judgment Conceded on Herbert Street Finance Debt
Earlier this month, a judgment regarding the €2.3 million owed to Herbert Street Finance was accepted by McKillen jnr, a resident of Torquay Road, Foxrock, Dublin. His lawyers told the court he was conceding the claim while seeking a personal insolvency arrangement. McKillen jnr was the co-founder of the hospitality group Press Up.
Court Directions and Adjournment
Judge Nessa Cahill made directions allowing for the filing of affidavits in the case. The judge adjourned the case to next month.
Frequently Asked Questions
What is a personal insolvency arrangement?
A personal insolvency arrangement is a legal framework that allows insolvent individuals to reach a settlement with creditors.
What is a protective certificate?
A protective certificate is a court-issued order that grants a debtor a temporary period of protection—in this case, 70 days—from legal proceedings and creditor claims.
How much debt does Paddy McKillen jnr owe?
Paddy McKillen jnr reported total debts of €27.7 million, which includes €8.7 million owed to Cabriz Finance, €2.3 million owed to Herbert Street Finance, €2.9 million owed to his wife Edel McKillen, and €1.8 million owed to his mother Maura McKillen.
Related reading