Businessman with debts of €133 million granted more time

A businessman with debts of €133 million has secured a High Court order extending the period of protection he has from his creditors by an additional 40 days.

The extension of the Protective Certificate was granted in respect of Patrick Whelan of Hollybank O'Connell Avenue Limerick, who voluntarily entered into the personal insolvency process earlier this year.

Mr Whelan, the High Court heard, owes €133m to Nama, Bank of Ireland and Bluestone Asset Finance.

The application was made before Mr Justice Denis McDonald at Friday’s vacation sitting of the High Court. The judge said he was satisfied from the evidence put before the court to grant the extension sought.

Seeking the extension, Keith Farry BL for Billy Murphy of Grant Thornton, said Mr Whelan's Protective Certificate, which prevents his creditors taking steps against him for a period of 70 days, was due to expire at midnight on Sunday, May 20th.

Mr Murphy is the Personal Insolvency Practioner (PIP) who is putting together a personal insolvency arrangement between Mr Whelan and his creditors.

The court heard Mr Whelan voluntarily entered into the insolvency process some months ago with the purpose of entering into an arrangement with his creditors. It that is accepted the arrangement would provide the creditors with a better outcome compared to him being adjudicated a bankrupt.

If the proposal is accepted and successfully completed, Mr Whelan will return to solvency.

Counsel said Mr Whelan had been in regular contact with the PIP, and has been forthright and honest. The application was made on an ex parte, basis where only one side was present in court.

Mr Farry told the judge that the Insolvency Service of Ireland were aware of the application and had not objected.