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Saturday 21 September 2019

Mick Wallace debts outlined in High Court

Mick Wallace TD leaving a High Court Bankruptcy Court following an application which was heard to have Mick Wallace adjudicated a bankrupt. Pic Steve Humphreys 7th November 2016
Mick Wallace TD leaving a High Court Bankruptcy Court following an application which was heard to have Mick Wallace adjudicated a bankrupt. Pic Steve Humphreys 7th November 2016

By Court Reporter

Mick Wallace had mortgage arrears of over €235,000 on three properties which are in negative equity, including two houses in County Wexford, when he was declared bankrupt last week.

The Independent TD also has a debt of €290,016 to his ex-wife Mary Murphy, according to a statement of financial affairs submitted to the High Court.

The three detached houses with a combined value of €1.1 million include Mr. Wallace's family home in Clontarf which is worth €800,000 with a mortgage of 908.177 and arrears of €77,041; a three-bed buy to let property at Bargy, Danescastle, County Wexford which has a value of €175,000, a mortgage of €262,556 and arrears of €50,580, and another three-bed detached, buy to let property at Youngstown, County Wexford with a value of €140,000, a mortgage of €191,732 and arrears of €107,950.

All three properties are secured against mortgages from AIB and also secured against loans from ACC.

According to a report in the Irish Independent newspaper which published details of his statement of affairs, the TD owns 'immovable property' of €1.11 million.

He owns a 2004 BMW car with mileage of 434,000 km on the clock which is valued at €3,000. He had €250 in cash and €5,300 in the bank as well as a pension value of of €214,986 with New Beginning Financial Services and a Dail pension , the value of which is unascertained, according to the court document.

His average after-tax income was listed as €4,000 a month, of which about €1,000 was accounted for by reasonable living expenses and €2,000 by mortgage payments.

Mr. Wallace's unsecured creditors include a debt of €51,329 with AIB Ballsbridge, Dublin and a debt of €290,016 to his former wife Mary Murphy.

He was decared a bankrupt on the application of a subsidiary of the US vulture fund Cerberus arising out of a debt of €2 milliion.

The subsidiary, Promontoria (Aran) Limited took over the loans from Ulster Bank. The loans were to Mr. Wallace's company and personally guaranteed by him. The TD has total debts of over €30 million.

The bankrupty file revealed that Mr. Weallace owed Cerberus €2 million, AIB €9.2 million and ACC €19.1 million.

The file also contained a letter written to him by insolvency practitioner James Green of McCambridge Duffy in early December advising him that he had no option but to proceed to bankruptcy.

Mr. Green offered the advice after ACC refused to support Mr. Wallace's efforts to come up with a personal insolvency arrangement.

Mr. Wallace was adjudicated bankrupt after Cerberus, via its subsidiary Promontoria (Aran) Ltd petitioned the High Court last month.

Two years ago, the fund purchased loans that his construction firm M&J Wallace had with Ulster Bank. Mr. Wallace had personally guaranteed the loans in March 2009.

The file showed a court order was issued to the Dublin City Sheriff's Office last August, authorising it to recover assets to satisfy the judgment.

However, the office said there were 'no saleable assets' at Mr. Wallace's home in Fairview, Dublin.

The TD's assets will now be managed by Official Assignee Christopher Lehane who heads up the Insolvency Service's bankruptcy division and he can sell off property to realise cash for creditors.

Wexford People

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