Irish businessman Paddy McKillen jnr consented to a €2.3 million judgment at the High Court on Friday after Herbert Street Finance pursued the debt. The legal concession coincides with a personal insolvency process for McKillen jnr, who recently secured court protection from creditors while carrying €27.7 million in total debts.
Legal counsel informed Judge Eileen Roberts at the High Court on Friday that his side was conceding the lender’s claim, noting that ongoing personal insolvency proceedings left them unable to advance initial arguments. The legal acknowledgment in Dublin marks a fresh turn for the co-founder of the Press-Up hospitality group, who is engaged in a court-backed restructuring effort.
Judge Grants Judgment For Herbert Street Finance
Martin Hayden, acting as counsel for McKillen jnr alongside Keith Farry, stated that his client was conceding the debt of some €2.3 million in proceedings centered on a claim brought by Herbert Street Finance (HSF). The concession effectively closes a legal challenge initiated by McKillen jnr, who had previously argued that the lender lacked authorization under Central Bank regulations to issue the loan.
Bernard Dunleavy, representing the lender alongside Niall Ó hUiginn, asked the judge to grant judgment in favor of HSF for €2,313,970. Counsel for the lender also requested that McKillen jnr’s separate claim against HSF be struck out entirely.
Debtor Discloses Total Liabilities of €27.7 Million
Court filings revealed that McKillen jnr carries total debts amounting to €27.7 million following a protection certificate granted late last month, which shields the businessman from creditors for a period of 70 days while he seeks a personal insolvency arrangement.
Lawyers for McKillen jnr, who resides on Torquay Road in Foxrock, Co. Dublin, stated during court applications last month that he was firmly insolvent
and held just €270 in his bank account. In addition to commercial liabilities, court disclosures indicated he owes €2.9 million to his wife, Edel McKillen, and €1.8 million to his mother, Maura McKillen.
Court Rejects Previous Bankruptcy Summons Challenge
Mr Justice Liam Kennedy rejected an attempt in August by McKillen jnr to strike down a bankruptcy summons filed by HSF over the disputed debt, leading up to Friday’s hearing. The judge determined that the summons was not an abuse of process and dismissed claims that it had been brought for an ulterior motive
.
The judge found he had not established that the summons was an abuse of process, and was brought for “an ulterior motive”.
Mr Justice Liam Kennedy, High Court
Mr Justice Kennedy also noted that McKillen jnr had failed to raise a real and substantial issue suitable for trial in plenary proceedings, which is a necessary threshold to set aside a bankruptcy summons.