THE HIGH COURT has approved personal insolvency arrangements allowing two sisters-in-law write down millions of euro of debts owed to banks and an affiliate of the global investment bank Goldman Sachs. 

The terms of Una and Margaret Kinsella’s Personal Insolvency Arrangements (PIAs), who have total debts of €8m, include that they will continue to make payments on the mortgages on their respective homes and they will each make lump sum payments of €100.

Out of those payments, financial fund Ennis Property Finance, which is an affiliate of Goldman Sachs, will receive €182.

Keith Farry Bl for the Kinsella’s Personal Insolvency practitioner Alan McGee told the court that the PIA was more advantageous to their creditors than if they were to be adjudicated as bankrupts.

It would allow both applicants retain their family homes and return to solvency within 12 months.

The sisters-in-law’s debts of €3.36m to Ennis Property Finance, which was an unsecured debt, arose out of personal guarantees they gave in respect of loans, which were acquired by the fund, advanced to their husband’s business.

The PIAs were formally approved by Mr Justice Mark Sanfey at the High Court on Wednesday. 

Counsel told the court that Una Kinsella of Roscomroe, Ballybritt, Roscrea, Co Tipperary had debts of approximately €3.8m, owed to AIB, Permanent TSB and Ennis Property Finance.

Under her PIA, the 45-year-old mother-of-three who works as a carer will also sell investment properties in Co Offaly, worth a total of €190,000, that she has an interest in.

She owes €356,000 to AIB in respect of the mortgage, which is a secure debt, on her family home, which is worth €195,000.

Under the PIA the mortgage has been restructured, with part of the debt written off, so that she will make repayments of €607 per month over the next 20 years.

She will also make a lump sum payment of €100, of which €94 will go to the fund.

Margaret Kinsella of Clashroe, Ballybritt, Roscrea, counsel said, had debts of €4.2m owed to Ennis Property Finance, Bank of Ireland (BOI), Ulster Bank, AIB and the Spanish bank, Banca March. 

Under her PIA the 50-year-old mother-of-one will also sell investment properties she has an interest in. She owes €257,000  to BOI in respect of her family home which is valued at €200,000.

Under the PIA her mortgage will be restructured, with part of the debt written off, that will see her make repayments over the next 20 years of up to €650 per month.

She will also make a lump sum payment of €100, of which €88 will go to Ennis Property Finance.

Despite the small lump sum In both cases Farry said that the creditors do better under the PIA than compared to if the Kinsellas were adjudicated bankrupt.

There were no objections to the PIA being approved by the court.