The High Court has granted a protective certificate preventing creditors from issuing proceedings against Donal Kelleher, brother of presidential election candidate hopeful Billy Kelleher.
Counsel for Donal Kelleher, of Ballyphilip, White’s Cross, Glanmire, Cork, made an ex-parte application for an extension of a protective certificate under the Personal Insolvency Act 2012, which would prohibit his creditors from taking legal action to recover their debts.
The High Court was told Mr Kelleher has liabilities of €4.7 million.
Barrister Keith Farry told the court a protective certificate, granted by Mr Justice Alexander Owens on July 1st, is due to expire at midnight on Monday. Notice of the certificate was issued to all creditorson July 2nd.
The certificate is valid initially for 70 days and may be extended for 40 days. It prevents creditors from taking legal proceedings against the debtor for the duration of its validity.
On Monday, Mr Justice Rory Mulcahy acceded to an application by Personal Insolvency Practitioner (PIP) Gary Digney of AAB Accountants Ireland, appointed by Mr Kelleher, to extend the period of its validity.
The extension was applied to allow for negotiations with the creditors and is granted if the court is satisfied the debtor is acting in good faith.
A reply made by the PIP to the Revenue Commissioners on July 21st stated that it was “a very complex case with numerous creditors, valuations and secured assets” which were still being carried out and that it was “very difficult at this stage to state what the creditors may expect to receive under the terms of the proposed Personal Insolvency Procedure”.
The biggest creditor, according to documents lodged with the court on June 30th, is PE Commercial Credit Unlimited in Tralee, Kerry for €2.1 million and Mars Capital Finance Ireland with a listed amount of €497,069.
Mr Farry told the court there were assets of €4.9 million with liabilities of €4.7 million. Counsel said Mr Kelleher was “cash-flow insolvent but asset solvent” which was “changing with the property market,” he said.
Mr Justice Rory Mulcahy said he was satisfied Mr Kelleher was acting in good faith and made an order to extend the protective period for 40 days.
Billy Kelleher, who has been an MEP for the south constituency since 2019, is along with Jim Gavin, seeking the support of the Fianna Fail Parliamentary Party as a candidate for the presidential election next month. The party is to decide its preferred candidate to go forward by secret ballot on September 9th.