Former billionaire Tony O'Reilly has been declared bankrupt in the Bahamas.

Formerly Ireland's richest man, his failed attempt to rescue Waterford Wedgwood and the collapse of his shares in Independent News and Media resulted in him losing a fortune.

AIB secured a judgement against him of around €22.5 million in June of last year.

The €7.5m proceeds of the sale of the Castlemartin Estate in Co Kildare to John Malone were used to reduce his debt to AIB to about €14m.

Mr O'Reilly has been given the go ahead to file for a personal insolvency arrangement by the court in the Bahamas.

The approval was given despite opposition from AIB.