Former Fianna Fáíl politician, Eddie Mulligan, has been approved for a debt write-off of €4.4 million in a deal that has also enabled him to save his family home.
That's according to today's Irish Independent.
Eddie Mulligan is a former Waterford councillor and general election candidate. He is now the coordinator of Waterford's Local Community Safety Partnership.
His house had been the subject of repossession proceedings but is now safe because of the debt deal which will make his mortgage arrears null and void.
That mortgage is being restructured so that the total debt due is reduced from over €600,000 to approximately €425,000.
The total amount of debt owed before the arrangements was €4.8 million.
The court heard yesterday that Mr Mulligan's financial difficulties had arisen out of the economic recession in 2008 when various property assets he had invested in lost their value.
It was also mentioned that his wife Dervla's hairdressing business ran into difficulties and was liquidated. She secured a PIA at the Kilkenny Circuit Court in 2021.
The collapse of the business took "a serious impact on our health and mental health," Mr Mulligan said in his affidavit.
He added that dealing with creditors had been "extremely challenging."
Eddie Mulligan Debt Restructuring
Mr Mulligan owed several organisations money.
Roughly €608,000 was owed to Pepper Finance Corporation on the family home, which has an estimated market value of €425,000.
The deal secured means that the negative equity element of the debt is to be written off, but the remainder of the mortgage will have to be paid.
New terms were agreed and an extension has been granted.
Mr Mulligan had invested in different properties following the financial crash, namely a commercial unit, a retail unit, and a site.
All three will be sold under the arrangement,
He also owed over €2.7 million to Everyday Finance DAC and €1.4 million to Bank of Ireland.
The majority of his debts were considered "unsecured" as they were not backed by assets.
The unsecured creditors will share €5,195 under the arrangement, but if Mr Mulligan had been declared bankrupt, they would receive nothing.
