COMI the Judge says is Ireland irrespective of investments overseas

international | rights, freedoms and repression | opinion/analysis

Saturday August 24, 2013 16:16

by Comyn - Bankruptcy in Ireland

'Property high-fliers declared bankrupt over debt of £71 million' Irish Independent

5 years into this economic recession, at last the legal profession may be finally drawing a definitive line in the sand, in other words a precedent, that will stop the strategic defaulters playing games with the banks and debtors to whom they owe money, and make them face up to their responsibilities in Ireland, rather than shirking their responsibilities to meet their debts in their own country where they have lived so lavishly during the 'good times'. These Mr and Mrs Bankrupts like the Mr and Mrs Tax Exiles need to step up to the plate. Honour is called for not cowardice. Up to now in the absence of the Insolvency legislation, there may have been some justification but not now.

A solicitor and a psychiatrist, are declared bankrupt over a debt of 71 m euros. They sought to say that their centre of main interest was not in Ireland, when evidence of their vast demesne on the Vico Road, Killiney revealed quite the opposite. The Bank of Ireland applied to have them declared bankrupt; the O'Donnells had failed to satisfy a judgment against them for £71.57 million in loans from the Bank of Ireland.

Mr Justice Peter Charleton - a reserved judgment, quite clearly outlined for all to understand that:-

''It was impossible not to find that the O'Donnells' main centre of interest was not in Ireland". He further stated:- 'there could be no issue but that the couple were bankrupt. They had engaged in the business of property investment and held directorships in a number of Irish companies registered for this purpose. To finance their investments, they had borrowed huge sums......' The message for the citizens of Ireland is now clear. The Troika tell the Central Bank who tells the bankers to force out the mortgage and buy-to-let 'delinquents' and finally start reclaiming ownership of our country and its economic base.

Like so many others, in March 2012, the O'Donnells sought to be adjudicated bankrupt in the UK courts claiming that since they had lived there since late 2011 and had extensive property interests in the UK they became eligible because they had relocated and set up a centre of principal residence there otherwise known as "COMI". Their 'expertise' saw the opportunities of the more liberal bankruptcy regime in the UK. Yesterday Mr Justice Charleton of the High Court declared the law; they are bankrupt and in Ireland and not the UK.

Let's start the debate about how the people in Ireland regard "Strategic Defaulters"?