Friday 20 October 2017

Anglo faces court fight over €8.3m Drumm loan

Tim Healy

ANGLO Irish Bank has conceded that its former CEO David Drumm has an arguable defence to its claim for the immediate repayment of €8.3m in unpaid loans.

It means the dispute must now go to a full hearing before the Commercial Court.

As well as opposing the bank's claim for the €8.3m, Mr Drumm has counter-claimed for €2.6m over the termination of his employment and loss of bonuses.

Counsel for Mr Drumm yesterday said Anglo was withdrawing its claim for summary judgment against his client, in effect accepting there were triable issues between the sides.

In those circumstances, the sides had agreed a schedule for the exchange of the legal documents necessary for a full plenary hearing, counsel added.

Mr Justice Peter Kelly listed the case for further directions on March 8. A hearing date will be set at a later stage.

Mr Drumm, now living at Stage Neck Road, Chatham, Cape Cod, US, has claimed in letters to Anglo that he has sufficient assets to meet his liabilities to the bank.

He claims the demand for immediate repayment is premature, in breach of loan agreements with him, and he is being harassed.

The bank denies those claims and has alleged Mr Drumm has failed to date to file a statement of affairs.

Mr Drumm has also claimed he and his wife Lorraine have given undertakings relating to their former family home in Malahide, which has been transferred into Mrs Drumm's name in what Anglo alleges is a fraud on creditors. The couple claim it was for "taxation reasons".

Anglo has brought two actions: one against Mr Drumm over non-repayment of loans and a separate action against the couple seeking to set aside the transfer of a Malahide property into Mrs Drumm's sole name. Anglo claims this property was Mr Drumm's main asset and the transfer is void as a fraud on creditors because it would mean the property cannot be used to reduce Mr Drumm's liability to Anglo.

The Drumms claim the transfer was "for taxation reasons" based on advice from US lawyers.

Irish Independent

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