Couple seeks nearly âŹ3m debt write-down
High Court told coupleâs financial woes linked to unpaid music royalties from US
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Theresa Lowe and Frank McNamara owe almost âŹ2.3 million on their home
SIMON CARSWELL
Musician Frank McNamara and his wife, television presenter-turned-barrister Theresa Lowe, are seeking a debt write-down of nearly âŹ3 million from the High Court to escape their financial troubles.
The couple are looking for a financial rescue in the form of a court-approved personal insolvency arrangement on total debts amounting to âŹ3.7 million over the objection of their biggest creditor.
The court heard Mr McNamara lost income in the US from his work as an orchestral conductor and music composer, and the Co Meath-based couple borrowed to help them through what they believed were temporary financial difficulties.
US private equity firm Tanager, a so-called vulture fund which bought the coupleâs mortgage debt from Bank of Scotland (Ireland), is seeking to block the plan as it would see more than âŹ1.7 million of its debt written off.
The fund, owned by US private equity giant Apollo Global Management, is being offered a lump sum payment of âŹ100,000 by the couple to go towards a new, written-down mortgage of âŹ550,000 on their house in Dunshauglin. The couple currently owe almost âŹ2.3 million on the four-bedroom family home.
Mr Justice Denis McDonald heard the difficulties arose for Mr McNamara (59), who was the music director of RTĂâs Late Late Show for 20 years, from US music royalty payments of $987,000 going unpaid. In total, he claims to be owed âŹ1.237 million in unpaid payments for his work as a conductor and composer. Mr McNamara was the arranger and producer for two consecutive Irish winners of the Eurovision Song Contest.
Quiz
Ms Lowe (56), a well known figure from her work on TV and radio, presented the TV quiz Where In The World? in the late 1980s and early 1990s and studied law at the time at Kingâs Inns in Dublin. The couple, who are both self-employed and have two dependent children, are seeking a six-year personal insolvency arrangement under which they would write off about âŹ2.9 million of debt. They are offering to make âŹ236,000 available to their creditors from Mr McNamaraâs inheritance and the disposal of five acres of land next to their home.
The court heard the couple remortgaged and sold a number of buy-to-let properties when they found themselves in financial trouble and were left owing âŹ530,000 in residual debt to Bank of Ireland.
Keith Farry, for the couple, told the court that Mr McNamara had been making âvery substantial incomeâ from his work as a music conductor in the US. He said that Mr McNamara ran unsuccessfully in Dublin South Central in the 2007 general election, adding to his financial difficulties.
The recession added to the coupleâs problems and Mr McNamara could not afford to travel to the US as the orchestras employing him could no longer pay travel and accommodation expenses.
Rudi Neuman Shanahan, for Tanager, questioned why Mr McNamaraâs difficulties dating back 16 years were being cited in support of the arrangement and queried whether the couple could work until 78 and 75 respectively.
The case continues.