The German ex-con, the Irish bankruptcy and the €2.6m Spanish mansion

The famous residents of an exclusive suburb just outside Barcelona have included footballers like Gerard Pique and Andres Iniesta, and international pop stars like Shakira. Recent World Cup winner Lamine Yamal is currently enjoying the spoils of a multi-million euro purchase there.

But a German businessman’s address in the neighbourhood has now scuppered his chance of application to be declared bankrupt in Ireland.

Last year, 44-year-old former convict Denis Melcher, who had amassed debts of close to €8m, convinced Ireland’s High Court to adjudicate him bankrupt.

As part of this process, Melcher submitted a sworn statement in which he declared that he was living in a modest rental home in Carlow.

However, at the time, Melcher was secretly spending €8,500 per month to lease a four-storey mansion overlooking Barcelona, with an option to purchase the property for €2.6m.

The revelation has raised fears that the Irish bankruptcy regime is now seen as an easy target for foreign nationals looking to shed colossal debts.

On this episode of The Indo Daily, host Fionnán Sheahan is joined by Irish Independent Legal Affairs Editor Shane Phelan to examine the implications of this curious case.

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