Personal Insolvency Acts 2012-2015 v Hyde (A Debtor) [2020] IEHC 123 (09 March 2020)

Personal Insolvency Acts 2012-2015 v Hyde (A Debtor) [2020] IEHC 123 (09 March 2020)

GE Capital, by submitting a proof of debt as an unsecured creditor and not asserting its security, waived its secured creditor status. The Personal Insolvency Act 2012 does not prohibit such waiver outside the statutory mechanisms. Therefore, the practitioner was correct to treat GE Capital as an unsecured creditor for voting purposes, and the statutory requirements for approval of the arrangement were satisfied.

Citation
[2020] IEHC 123
Parties
Objecting Creditor: Promontoria (Scariff) DAC; Debtor: Gary Hyde; Personal Insolvency Practitioner: Alan McGee; Creditor: GE Capital Woodchester Ltd
Jurisdiction
Ireland
Judgment Date
09 March 2020
Procedural Posture
Personal Insolvency Objection / Objection to Confirmation of Personal Insolvency Arrangement Under S.112(3) Personal Insolvency Act 2012
Outcome
objection dismissed
Legal Topics
Personal Insolvency Arrangement, Secured Creditor Status, Waiver of Security, Creditor Voting Rights, Statutory Interpretation
Insolvency Law Personal Insolvency Arrangement Secured Creditor Status Waiver of Security Creditor Voting Rights Statutory Interpretation

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Parties

Promontoria (Scariff) DAC

Objecting Creditor

Gary Hyde

Debtor

Alan McGee

Personal Insolvency Practitioner

GE Capital Woodchester Ltd

Creditor

Procedural Posture

Personal Insolvency Objection / Objection to Confirmation of Personal Insolvency Arrangement Under S.112(3) Personal Insolvency Act 2012

Legal Issues

  1. 1 Whether the practitioner was correct to treat GE Capital as an unsecured creditor for voting purposes under the Personal Insolvency Act 2012
  2. 2 Whether a secured creditor can waive its secured status outside the express statutory mechanisms
  3. 3 Whether the objection by Promontoria Scariff was valid given the procedural history

Ratio Decidendi

GE Capital, by submitting a proof of debt as an unsecured creditor and not asserting its security, waived its secured creditor status. The Personal Insolvency Act 2012 does not prohibit such waiver outside the statutory mechanisms. Therefore, the practitioner was correct to treat GE Capital as an unsecured creditor for voting purposes, and the statutory requirements for approval of the arrangement were satisfied.

Court Disposition

objection dismissed

Orders

  • The objection raised by Promontoria Scariff under s.112(3) is dismissed.