A High Court judge has approved a personal insolvency arrangement for Donegal county Councillor John O’Donnell, who has debts of more than €4.2 million.
A meeting of Mr O’Donnell’s creditors had last month had rejected the proposed arrangement.
The Irish Times is reporting that Ms Justice Marie Baker approved an arrangement which involves Mr O’Donnell paying a lump sum of €40,000 within three months and continuing to pay a restructured mortgage on his family home, with a substantial writedown of the original mortgage debt.
Mr O’Donnell owes an estimated €4.2 million to financial institutions, including AIB and ACC Loan Management.
Approving the arrangement, Ms Justice Baker said the debtor had substantial debt and relatively small income and very small assets.
Bankruptcy proceedings initiated by Mr O’Donnell will also now be struck out, the court heard.