The former dentist and hotel investor has approved a record €170m debt write-off by the High Court

Mr Harte, of Timoleague, Co Cork, obtained the write-off in exchange for a payment of just €70,000 to his unsecured creditors.

The depreciation dwarfs the previous record of 133 million euros from 2018.

Mr. Harte founded Harte Holdings in the early 2000’s specializing in real estate investment and development, primarily in the residential and hospitality sectors.

In 2007, the group was the majority shareholder in a €141 million transaction to acquire four US hotels from private equity group Blackstone Group.

However, the focus of the business was in Ireland and London.

Among Mr Harte’s investments was his support of The Sin Bin, former Ireland rugby international Peter Clohessy’s nightclub in Limerick, which ceased operations in 2014.

A PIA proposal prepared by John O’Callaghan, a liquidator, and brought to court by attorney Keith Farry says the group has built a high level of credibility in sourcing, operating and managing business, which in turn has caught the attention of investors and lenders alike.

The court heard that the group, cheered on by lenders in the Celtic Tiger era, was encouraged to expand and develop its operations.

“Like many others in this area at the time, there was a spectacular train crash in 2008, starting with Lehman’s and then the Irish banking collapse. In fact, the team became an actual asset manager for Nama and other large financial institutions,” the PIA application reads.

“In addition to the bank debts, there were significant liability obligations towards private investors who had also invested directly and indirectly in projects.

“The early gains were spectacularly reversed and a negative equity position was quickly realized with associated guarantees and an ongoing commitment, effectively making the team asset managers for the institutions.

“Indeed, Barry and the team have continued trading while paralyzed with this legacy for the last few years and have sold all assets at this point.

“This started with a portfolio under management of over €650 million.”

Despite the sell-off, the court heard that Mr. Harte had an old debt of well over 100 million euros due to personal guarantees, which now had to be taken into account and dealt with as part of the private insolvency proceedings.

The court heard that after a bankruptcy filing was served, Mr Harte was introduced to Mr O’Callaghan, who took over the case to find a better solution for debtors.

The court heard Mr Harte reached an agreement with creditors NAMA, KBC, AIB, Pepper, Ulster Bank and all other secured creditors over a considerable period of time to sell properties or permit and assist recipient sales.

According to the court, Mr. Harte’s household income was modest at €6,173 per month.

In the agreement, Mr O’Callaghan argued that creditors would be worse off if Mr Harte went bankrupt.

As part of the PIA, Mr. Harte’s house, which belongs to his wife, is to be sold. But he can continue to live there.

Two other properties in Bundoran, Co. Donegal and in Limerick are being given up voluntarily.

Based on input from Mr. Farry. Mr Justice Owens said he was happy to approve the PIA as all legal criteria had been met and it had been approved by the required proportion of creditors.

The previous record write-off under a PIA was granted to former Ireland rugby international and manager Pat Whelan four years ago.

Once one of the most prominent real estate developers in the Midwest, the 72-year-old from Limerick City was known for his exploits on the athletic field, where he was a member of the Munster team that defeated New Zealand at Thomond Park in 1978.

Later he was instrumental in the renovation of the stadium.

According to court documents, he ran into financial difficulties “due to the economic downturn and recession” in the late 2000s. His biggest creditor was Nama, to whom he owed 120 million euros.