Re: Tinkler ( Personal Insolvency) [2018] IEHC 682 (05 December 2018)

Re: Tinkler ( Personal Insolvency) [2018] IEHC 682 (05 December 2018)

The proposed PIAs are not fair and equitable in relation to Cheldon as a separate class of secured creditor when compared to Start Mortgages, as there is no objective justification for the disparity in treatment. The practitioner formulated the PIA to secure Start's support, which is contrary to the statutory obligation to treat all classes of creditors fairly and equitably. The requirement in s.115A(9)(e) is not satisfied, and the PIAs cannot be confirmed.

Citation
[2018] IEHC 682
Parties
Applicant/debtor: Noel Tinkler; Applicant/debtor: Britt Tinkler; Objector/secured Creditor: Cheldon Property Finance DAC; Secured Creditor: Start Mortgages Limited; Secured Creditor: Bank of Ireland Mortgage Bank (BOIMB); Creditor: Revenue Commissioners
Jurisdiction
Ireland
Judgment Date
05 December 2018
Procedural Posture
Personal Insolvency Arrangement (pia) Confirmation Under S.115 A(9) Personal Insolvency Act 2012 2015 / High Court Judgment on Application to Confirm Pias Despite Creditor Objection
Outcome
Application refused; confirmation of PIAs denied.
Legal Topics
Personal Insolvency Arrangements, Secured Creditors, Preferential Debts, Class of Creditors, Unfair Prejudice, Fair and Equitable Treatment
Insolvency Law Bankruptcy Law Property Law Personal Insolvency Arrangements Secured Creditors Preferential Debts Class of Creditors Unfair Prejudice +1 more

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Parties

Noel Tinkler

Applicant/debtor

Britt Tinkler

Applicant/debtor

Cheldon Property Finance DAC

Objector/secured Creditor

Start Mortgages Limited

Secured Creditor

Bank of Ireland Mortgage Bank (BOIMB)

Secured Creditor

Revenue Commissioners

Creditor

Procedural Posture

Personal Insolvency Arrangement (pia) Confirmation Under S.115 A(9) Personal Insolvency Act 2012 2015 / High Court Judgment on Application to Confirm Pias Despite Creditor Objection

Legal Issues

  1. 1 Whether the proposed PIAs are fair and equitable in relation to each class of creditor that has not approved the proposal and whose interests or claims would be impaired by its coming into effect under s.115A(9)(e)
  2. 2 Whether the proposed PIAs are unfairly prejudicial to the interests of Cheldon under s.115A(9)(f)
  3. 3 Whether the treatment of Revenue preferential debt complies with statutory requirements

Ratio Decidendi

The proposed PIAs are not fair and equitable in relation to Cheldon as a separate class of secured creditor when compared to Start Mortgages, as there is no objective justification for the disparity in treatment. The practitioner formulated the PIA to secure Start's support, which is contrary to the statutory obligation to treat all classes of creditors fairly and equitably. The requirement in s.115A(9)(e) is not satisfied, and the PIAs cannot be confirmed.

Court Disposition

Application refused; confirmation of PIAs denied.

Orders

  • No order confirming the coming into effect of the proposed PIAs for Noel Tinkler and Britt Tinkler.