Life Changing Debt Right Sizing & Related Business Reorganisation


A Midlands based couple engaged in the motor & haulage sectors took on €650k of property development debt in 2007, only to find the presumed market conditions changed permanently against them shortly thereafter.


In a separate development in 2009, the majority Director/Shareholder’s fellow brother minority Director/Shareholder was involved in a near fatal haulage accident. In their keenness to obtain long-term PRSI related illness benefit for the injured brother, the Directors unintentionally caused the Co’s PRSI liability to be altered (after all appeal procedures had been exhausted) with additional A Class PRSI contributions becoming liable, for the full ten year period of the Minority Shareholder/ Director’s employment, such liabilities having no collection cut-off period being technically social insurance rather that taxation in nature.


In addressing the financial stress of the Majority Shareholder/Director’s family situation which by 2012 had become unsustainable, McGleenan & Co set about the following programme of debt advisory work to address their plight:


  • Under the Data Protection disclosure regime, the lender’s records revealed material flaws in the drafting of their loan agreement terms & security arrangements.


  • Insolvency Practitioners were appointed to:


  • A) Formally represent our proposal to settle the debt in full for €150k raised on one correctly secured asset, while leaving out a flawed secured commercial rental property for the benefit of the borrowers and


  • B) Winding-up the haulage Co after identifying a firm to manage the regulatory burden by the experienced Majority Shareholder/Director, while formally addressing the legacy PRSI liability that the family’s haulage Co could no longer sustain.


  • The Majority Shareholder/Director’s family finances & mental health were finally put back on a sound footing in late 2014, with income coming from the new working partner arrangements & rental income from the commercial property that the bank waived its interest in, as part of a binding comprehensive debt settlement agreement.