Legal costs order made against McKillen jnr after failed bid to set aside bankruptcy summons

Paddy McKillen jnr must pay legal costs incurred by a lender in opposing the businessman’s bid to strike down a bankruptcy summons over a debt exceeding €2 million, the High Court has ordered.

Herbert Street Finance in January issued the bankruptcy summons, the first step in bankruptcy proceedings, over the debt it said McKillen jnr owed it.

In August, Judge Liam Kennedy dismissed an application by McKillen jnr to set aside the summons.

In September, McKillen jnr commenced a bid for a personal insolvency arrangement, telling the High Court he was insolvent with debts of €27.7 million. To this end, McKillen jnr was granted a protective certificate, protecting him from his creditors for a limited time. The certificate has recently been extended to a date in December.

Subsequently, in October, McKillen jnr, of Torquay Road, Foxrock, Dublin, consented to a judgment against him over debt owed to Herbert Street Finance in the amount of €2.3 million.

McKillen jnr’s lawyers told the court on that date that he was conceding the claim for the debt, in circumstances where he was seeking a personal insolvency arrangement.

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On Monday, Niall Ó hUiginn, barrister for Herbert Street Finance, told Judge Kennedy he was seeking an order for his client’s legal costs, following its successful defence of the set aside application.

Ó hUiginn noted that if the court made the costs order sought, it would be captured by the protective certificate granted to McKillen jnr.

Keith Farry, barrister for McKillen jnr, said he could not consent to the costs order sought, but said his side recognised the lender had been successful in opposing the set aside application.

The judge awarded the costs of the set aside application to Herbert Street Finance.

The substantive bankruptcy petition was adjourned to January.

McKillen jnr’s personal insolvency case is due to come back before the court on Monday. Last month, the court made directions for the filing of written evidence, after two creditors raised concerns about McKillen jnr’s disclosures to the court.

McKillen jnr is the co-founder of the hospitality group Press Up.