Businessman Paddy McKillen jnr is challenging a bid to bring bankruptcy proceedings against him over an alleged €2.1 million debt.
McKillen jnr denies he is indebted to Herbert Street Finance Unlimited Company in any sum exceeding €20,000 and claims he is entitled to court protection from a demand that he alleges is invalid and unenforceable.
A bankruptcy summons, the first step in bankruptcy proceedings, was issued in late January by Herbert Street Finance over the alleged €2.1 million debt.
The summons alleged that unless McKillen jnr paid the €2.1 million sum, he would have committed an act of bankruptcy – unless he applied to have the summons dismissed on the grounds he was not indebted to Herbert Street Finance in any sum (or only in the sum of €20,000).
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Herbert Street Finance claims the €2.1 million debt arises on foot of McKillen jnr covenanting to pay on demand the obligations of Cool Dust Ltd to Herbert Street Finance, up to a maximum €3 million.
It claims sums of €2.3 million were received in part payment of Cool Dust’s obligations but about €2.14 million remains due and owing, plus daily interest of about €533 since November last year when the demand was served.
When the matter came before the High Court bankruptcy list on Monday, barrister Keith Farry, for McKillen jnr, of Torquay Road, Foxrock, Dublin, said he was seeking to set aside the summons.
Farry said he wanted time to reply to a sworn statement from the creditor. He was flagging this matter would be “fully contested” and he would be raising points that the alleged debt was overstated and in relation to the nature of the lending.
There is an issue whether debt can ground a summons if the debt cannot be proven in bankruptcy, and whether the debt has been overstated and the effect of that on the summons, the court was told.
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Barrister Niall Ó hUiginn, for the creditor, said he was very anxious to get the matter on. He said the issue concerning whether the debt was provable had not been raised prior to this but his side would deal with it.
Judge Liam Kennedy made directions for the exchange of affidavits and submissions and adjourned the matter for mention on April 13th when a hearing date for the set-aside application is expected to be fixed.
