Galway Bay fm newsroom - The High Court has approved a Personal Insolvency Arrangement allowing a Claregalway electrical contractor to write off approximately €2.7m in debt owed to financial institutions.
Mr Justice Alexander Owens, who approved the PIA in respect of Thomas Fahy on Monday, described the arrangement as being "a good bit of business".
Under the PIA, Mr Fahy's unsecured debts of approximately €2.5m will be written off for a payment of just over €2000.
The court heard that under the scheme Mr Fahy, a 58-year-old self-employed electrical contractor from Cortoon, will retain his family home.
His mortgage will be restructured, and partially written down by €230,000 over time.
The court heard that Mr Fahy got into financial difficulties with total debts of over €2.9m.
As a result of his difficulties he obtained the services of Personal Insolvency Practitioner Nicholas O'Dwyer, and sought to enter into a PIA, which when completed will see him return to solvency.
His main unsecured creditor is Everyday Finance DAC which was owed just over €2.47m.
Mr Fahy, who is married with one dependent child, owes Pepper Finance Corporation some €472,000 in respect of his mortgage, while his home is worth €240,000.
