Sir Anthony O'Reilly, once the State's richest man, was called "insolvent" by AIB as it had a judgment for €22.6 million entered against him in the Commercial Court yesterday.

Judgment for the same amount was also entered against two of the former billionaire's investment firms, Indexia Holdings and Brookside Investments Ltd yesterday.

The Commercial Court heard that Sir Anthony owed €195 million to eight banks and one fund. His debt to AIB represents 11.6 per cent of his overall personal liabilities to creditors, and the bank said it believed his overall debts were greater than his remaining assets.

Michael Cush, counsel for Sir Anthony, said his client did not object to the entry of judgment but asked for a six-month stay of registration and execution to allow for the orderly completion of a sale of his unsecured assets and his 750-acre estate in Castlemartin, Co Kildare. Castlemartin, the court heard, had already received "expressions of interest" from potential buyers. The estate includes a church and a family graveyard where the former rugby international's parents and two grandchildren are buried.

Jordan Town and Country Estate in Kildare are understood to be being lined up to handle the sale, which is likely to prompt American, Middle Eastern and domestic interest.

‘Very optimistic’

AIB opposed the bid by Sir Anthony to secure a six-month stay preventing AIB pursuing his unencumbered assets. It described the businessman’s plans to pay all his debts as “very optimistic”.

The 99 per cent State-owned bank said it was concerned that if a stay were granted, Sir Anthony's other banks might try to put it at the "back of the queue" when it came to proceeds of asset sales in the Bahamas and the British Virgin Islands.

Mr Cush denied this was the case and presented to the court letters in support of Sir Anthony from his other banks. He said his client was prepared to give a commitment to AIB to inform it of any move by any rival creditor against his client in return for a stay.