Paddy McKillen Jnr defends financial statements in court

Irish businessman Paddy McKillen jnr stands over financial statements provided to the High Court as part of a personal insolvency arrangement bid, after two lenders owed a combined €11 million raised concerns over his disclosures.

Last month, McKillen jnr secured a protective certificate after telling the court he was firmly insolvent with total debts of €27.7 million. That certificate shields him from creditor enforcement for 70 days. On Monday, legal representatives for Herbert Street Finance and Cabriz Finance appeared before Judge Nessa Cahill to file applications seeking to set aside the protective order.

Herbert Street Finance Claims Debtor Filings Lack Detail

Bernard Dunleavy, counsel for Herbert Street Finance, told the court his client is owed €2.3 million and pointed to an alleged absence of detail in the debtor’s filings. Dunleavy referenced a recent judgment where Judge Liam Kennedy struck down an attempt by McKillen jnr to set aside a bankruptcy summons issued over the same debt. That prior judgment noted inconsistencies and silence in the information provided.

Herbert Street Finance argued that a similar pattern appeared in the current insolvency application. Dunleavy also highlighted unusual features in financial arrangements involving family members, noting that McKillen jnr owes €2.9 million to his wife, Edel McKillen, and €1.8 million to his mother, Maura McKillen. These familial obligations elevate their standing in the list of creditors.

Legal counsel sought directions requiring McKillen jnr to supply further written evidence with appropriate disclosures. Martin Scanlon, representing Cabriz Finance—owed €8.7 million—agreed with the proposed reporting directions.

McKillen Jnr Maintains Financial Statement Is Accurate

Keith Farry, appearing for personal insolvency practitioner Eugene McDarby, confirmed that his client was agreeable to the requested directions. Farry told the court that McKillen jnr stands over the financial statement provided, maintaining that it is truthful and accurate, and expressed willingness to engage with creditors requesting additional details.

Earlier this month, McKillen jnr consented to a judgment against him over the €2.3 million debt owed to Herbert Street Finance while pursuing the personal insolvency arrangement. Judge Nessa Cahill made directions allowing for the filing of affidavits and adjourned the case to next month.