A Personal Insolvency Arrangement (PIA) has been approved by the High Court that will allow a 47-year-old Cork man to write off over €3.4 million in debts for €30,000.
On Monday Mr Justice Alexander Owens approved a PIA in respect of John Maloney, a project manager with a development company, of Chestnut Haven, Ballyclough, Kilworth in Co Cork.
His main creditor was financial fund Cabot Financial, which had acquired loans he had given guarantees on several years ago and which was owed over €3.4 million.
The court heard Mr Maloney was involved in several property development projects, for which he obtained loans on foot of personal guarantees given in respect of loans from ACC and Ulster Bank.
These included a nursing home development that was not successful, and he was part of a partnership to develop lands in Co Cork, which also did not work out.
Over the years he had worked with his creditors to deal with his debts and dispose of the assets.
Under the PIA Mr Maloney, whose background is in construction and who lives in rented accommodation owned by his mother-in-law with his wife and young child, would provide a lump sum of €35,000 to his creditors, €5,000 of which will cover the costs of his insolvency application.
Arising out of his debts he sought advice from Personal Insolvency Practioner John Butler, and entered the insolvency process.
Mr Butler, represented by Deirdre Miller BL, asked the High Court on Monday to approve Mr Maloney's PIA.
The court was told that his creditors would do better under the PIA compared to if Mr Maloney was adjudicated as bankrupt.
There were no objections to the 12-month-long PIA from being approved. On completion it will allow Mr Maloney to return to solvency.
