A court has overturned the refusal of a bank to agree to an insolvency deal for a Co Monaghan couple.

The development means the original proposal of a 50% write-down of mortgage debt, or a €150,000 reduction in the loan on the family's home, will now proceed.

This is the first time a court has overturned a veto by a bank to an insolvency deal.

Monaghan Circuit Insolvency Court decided the insolvency deal originally rejected by Pepper Finance, which is acting on behalf of Dankse Bank, should proceed.

It is understood there are 22 other appeals to refusals by banks to agree to insolvency arrangements before the courts.

The couple were represented by barrister Keith Farry and solicitor Bill Holohan. The insolvency deal was originally proposed by McCambridge Duffy personal insolvency practitioners.