A judge has further extended protection under the Personal Insolvency Acts for a Co Galway man with debts of about €8.5 million.
A personal insolvency practitioner for Gerry Connolly (66), of Kilternan, Kilcolgan, Co Galway, had previously obtained a 40-day extension of a protective certificate under the Acts.
This was sought to allow more time to deal with Mr Connolly’s creditors and prepare a proposal for a personal insolvency arrangement.
The bulk of Mr Connolly’s €8.5 million debt is to Ulster Bank Ireland DAC. His creditors also include Mars Capital Finance DAC, which provided proof of debt of €682,000 on foot of a family home mortgage.
RM Block
At the High Court on Monday, Ms Justice Emily Farrell agreed to grant a further 40-day extension of the protective certificate.
Under the Act, a protective certificate runs for 70 days and can be extended for 40 days. A second 40 day extension may also be granted if the court is satisfied there are exceptional circumstances or other circumstances outside the control of the debtor and their Personal Insolvency Practitioner (PIP).
The judge was told by barrister Keith Farry, for Niall Moran, Mr Connolly’s PIP, that the first extension period of the protective certificate was due to expire at midnight.
Counsel said additional time was required to engage with creditors and to address issues arising from different valuations for the debtor’s property at Kiltiernan East. Mr Connolly has experienced some health issues, he said.
In an affidavit, Mr Moran, of Rescue Me, with offices in Athlone, Co Westmeath, said Mr Connolly had, on his PIP’s advice, obtained a property valuation of €390,000 from a local valuer prior to the proceedings.
Mars had in late June provided a valuation of €550,000, Mr Moran said.
Mr Connolly has been seeking to raise additional funds to address the discrepancy between the two valuations and was at an advanced stage of having the funds put in place that would allow him make an offer to the mortgage holder that would most likely succeed, Mr Moran said.
More time would assist in having all procedural elements finalised before the calling of a creditors meeting, Mr Moran said. All involved are acting in good faith and the second 40-day extension will hopefully assist in the case coming to an amicable resolution, he said.
The extension of time sought is of benefit to all parties, he said.
