The High Court has approved a Personal Insolvency Arrangement that will allow a Midland's based property developer to write-off approximately €25m of debt mainly owed to financial institutions.
Mr Justice Alexander Owens said he was approving the PIA that will allow 44-year-old Tony Diskin to retain his family home in Churchfields, Coosan, Athlone Co Westmeath and allow him to return to solvency.
The court heard that Mr Diskin had been involved in property development, but had got into financial difficulties following the crash in 2007-08.
His main creditors included Bank of Ireland, Cabot Finance and AIB, which was owed some €14m.
AIB had initially opposed Mr Diskin's application for a PIA.
However, AIB's loan the court heard had been sold to financial fund Everyday Finance, which was not opposing Mr Diskin's PIA from being approved.
At the High Court, Keith Farry Bl for Mr Diskin's Personal Insolvency Practioner John Donnan, said that that the PIA will be funded with a lump sum of €30,000 that had been provided from a third party.
This, less fees and charges that arise out of the PIA application, represents a dividend of 0.1% to Mr Diskin's creditors.
Counsel said that under the PIA Mr Diskin's creditors will get a better return compared to if he was adjudicated a bankrupt.
Under the terms of the PIA, which is to last six months, Mr Diskin is to be afforded adequate living expenses.
Counsel said that Mr Diskin's family home is worth €395,000 with KBC Bank owed €75,000 on the mortgage.
That will continue to be paid down, counsel said.
In addition, counsel said that Mr Diskin's mother Maurine holds a second charge on the family home of €690,000, resulting in the property being in negative equity.
Under the PIA her debt will be written down to €180,000 and will be paid off over the next 15 years.
Counsel said that Mr Diskin, a married father with two young children, currently works as a manager for a property management firm called Diskin Enterprises Ltd and earns €2,300 per month.
Mr Justice Owens said he was satisfied the criteria required to allow the court to approve the PIA had been met.
The judge added that no party was formally objecting to the proposed PIA and formally approved Mr Diskin's PIA.
