Paddy McKillen jnr has stood over financial statements provided to the High Court as part of his bid for a personal insolvency arrangement (PIA), after two lenders owed a combined €11 million by the businessman raised concerns about his disclosures to the court.
Last month, McKillen jnr obtained a protective certificate after the court heard he was “firmly insolvent” with debts of €27.7 million. The certificate, obtained late last month, protects him from his creditors for 70 days.
On Monday, lawyers for lenders Herbert Street Finance and Cabriz Finance – who are owed €2.3 million and €8.7 million by McKillen jnr respectively – told Judge Nessa Cahill their clients had issued applications to set aside the protective certificate.
Bernard Dunleavy, counsel for Herbert Street Finance with barrister Niall Ó hUiginn, said his client’s application comes amid concerns regarding an alleged “absence of detail” in information provided by McKillen jnr in his application for a protective certificate.
Dunleavy pointed to a recent judgment, in which Judge Liam Kennedy struck down an attempt by McKillen jnr to set aside a bankruptcy summon issued by Herbert Street Finance over the debts owed to it.
Dunleavy described the judgment as noting “inconsistencies and silence” in information provided by McKillen in the context of that application. Counsel submitted his client had observed this pattern again in McKillen’s application for a protective certificate.
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Dunleavy also submitted McKillen jnr’s affairs were “complex”, and said there were “unusual” features to his arrangement with his mother and wife, which elevates them in the list of his creditors. The court previously heard McKillen jnr owes €2.9 million to his wife Edel McKillen and €1.8 million to his mother Maura McKillen.
Counsel said his side were seeking directions that McKillen jnr provide further written evidence with “appropriate disclosures” relating to his affairs. He said his side was prepared to reply to such evidence within three days.
Martin Scanlon, barrister for Cabriz Finance, said his client was agreeable to Herbert Street Finance’s suggestion.
Keith Farry, appearing for personal insolvency practitioner Eugene McDarby, said he was agreeable to the suggested directions.
He said his instructions were that McKillen jnr stands over his financial statement provided to the court, and that it was truthful and accurate. He said was happy to engage with further details required by creditors.
The judge made directions allowing for the filing of affidavits, and adjourned the case to next month.
Earlier this month, McKillen jnr, of Torquay Road, Foxrock, Dublin, consented to a judgment against him over the €2.3 million debt owed to Herbert Street Finance.
McKillen jnr’s lawyers told the court that he was conceding the claim for the debt, in circumstances where he was seeking a personal insolvency arrangement.
McKillen jnr was the co-founder of the hospitality group Press-Up.