Cork publican has debts of more than €58m written off
John Gaffney, former co-owner of Flannery's Bar on the Glasheen Rd in Cork. File Picture: Denis Minihane
A Cork publican has had debts of more than €58m written off as part of a High Court-approved personal insolvency arrangement.
John Gaffney, of Mountain Lodge, Ballyleigh, Waterfall, Co Cork, was a major property investor in the Celtic Tiger boom years before the global financial crash began in 2008, the High Court was told.
Court documents showed that Mr Gaffney had total debts of €59,439,493, far greater than the value of his assets.
His creditors include Nama, Bank of Ireland, Pepper, Mars Capital Finance Ireland DAC, and Everyday Finance DAC.
Barring one investment property in Monard, Co Tipperary, all of Mr Gaffney's investments had been sold already, the High Court heard.
The High Court arrangement is one of the largest ever agreed since new legislation was drafted in the years following the financial crash.
Under the approved terms of the High Court, Mr Gaffney will have almost all of the debt written off but he and his family can continue living in the family home subject to the payment of the restructured mortgage which requires a monthly payment of €4,500.
Meanwhile, some €6,000 will be given to unsecured creditors as part of the arrangement in settlement of the €58m unsecured debt.
The personal insolvency arrangement, which was devised by Midleton-based personal insolvency practitioner Alan McGee, was approved by Mr Justice Alexander Owens following an application to the court by barrister Eoin Martin, instructed by solicitor Eugene Carley.
Mr McGee said in an affidavit that Mr Gaffney’s liabilities significantly exceeded his assets but that the personal insolvency arrangement meant it was reasonable that Mr Gaffney would resolve debts without resorting to bankruptcy.
The High Court was told that Mr Gaffney's wife Assumpta had sought a personal insolvency practitioner three years ago when AIB sought repossession of the family home. A personal insolvency arrangement was approved in that instance, with around €4.2m in debts written off.
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