Thursday 23 October 2014

Former FF politician has bankruptcy extended by 12 months

Published 27/05/2014 | 02:30

Former Fianna Fall politician Gerard Killally
Former Fianna Fall politician Gerard Killally

The High Court has extended the duration of former Fianna Fail politician Gerard Killally's bankruptcy by an additional 12 months.

Mr Killally, a former councillor and general election running mate of ex-Taoiseach Brian Cowen, was adjudicated bankrupt in July 2009 with debts of some €70m.

As a result of a ruling yesterday by Mr Justice Brian McGovern, Mr Killally will remain as a bankrupt until June 2015 because of a conviction in 2012 for stealing assets from his bankrupt estate.

Over the last number of years he has been before the courts in relation to a number of property deals conducted during the economic boom. In 2012, judgment of €9.7m was entered against him at the Commercial Court over one property deal.

At the time of his adjudication, he expected to be a bankrupt for up to 12 years.

Under new insolvency laws that came into force last December, the duration of a person's bankruptcy was reduced to three years.

Mr Killally, a businessman and developer, had hoped to avail of the new law and exit bankruptcy next month.

However, yesterday at the High Court, the official in charge of the bankruptcy, Chris Lehane, sought an order postponing Mr Killally's discharge from bankruptcy for an additional 12 months.

Stealing

The order was sought because Mr Killally was convicted in November 2012 of stealing assets from his estate in bankruptcy. He was given a three-year suspended sentence for stealing €18,000 worth of refrigeration equipment from a shop he used to own.

Mr Killally, Shean, Edenderry Co Offaly, represented by Vincent P Martin, opposed the application.

Counsel said that it was their case that in seeking to extend the period of bankruptcy, Mr Killally was in effect receiving "a double punishment" for his 2012 conviction.

Mr Justice McGovern said he was satisfied to grant the order sought by Mr Lehane.

The judge also granted Mr Lehane an income payment order requiring Mr Killally to pay €433 per month towards his bankruptcy debts until May 2016.

Irish Independent

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