Hotelier Paddy McKillen jnr’s bid to set aside a bankruptcy summons over an alleged €2.1 million debt is set to be rejected, a judge has indicated.
Judge Liam Kennedy on Monday said the “direction of travel” was that he would reject the application to dismiss a summons seeking the bankruptcy of McKillen jnr, issued by lender Herbert Street Finance (HSF). The judge indicated he would allow HSF’s bankruptcy petition against McKillen jnr to proceed.
The judge told barristers Niall Ó hUiginn, for HSF, and Keith Farry, for McKillen jnr, he would issue a full written judgment on the set aside application in the coming seven days. He adjourned the case to October.
Issued in January, the summons, a first step in bankruptcy proceedings, alleged McKillen jnr would have committed an act of bankruptcy unless he paid an alleged debt of €2.1 million or applied to have the summons dismissed on grounds he was not indebted to HSF in any sum, or only in the sum of €20,000.
HSF claimed the €2.1 million debt arose on foot of McKillen jnr covenanting to pay on demand the obligations of his Cool Dust Ltd firm to HSF, up to a maximum of €3 million.
