Thursday 22 June 2017

Anglo sues former director over unpaid loans of €50m

Former Anglo Irish director Tom Browne is flanked by the bank's former chief executive David Drumm (left) and chairman Sean FitzPatrick in 2004
Former Anglo Irish director Tom Browne is flanked by the bank's former chief executive David Drumm (left) and chairman Sean FitzPatrick in 2004

Tim Healy

A FORMER leading figure in Anglo Irish Bank is being pursued by the nationalised lender for €50m over unpaid loans.

The bank is seeking summary judgment orders in the Commercial Court against Tom Browne, the one-time head of its Irish lending division.

Mr Browne's loans were secured against shares in the bank and various property investments.

The bank's former chief executive David Drumm was facing a similar action, although this has been put in doubt after he filed for bankruptcy in the US.

Anglo also pursued its former chief executive and chairman Sean FitzPatrick over unpaid directors loans, before he too filed for bankruptcy earlier this year.

Mr Browne, of Ferney Hill, Brighton Road, Foxrock, Dublin, claims he is being singled out by Anglo because of his previous position with the bank. He claims "negligent acts" by Anglo and state bodies between late 2007 and January 2009, resulting in the bank's nationalisation.

This in turn had led to the collapse of the bank's shares, resulting in him suffering substantial losses as a result.

Mr Browne claims in letters to the bank that had the then board not engaged in certain courses of action, Anglo would still be a publicly quoted company and his shareholding would be "of material value".

However, in letters to Mr Browne, Anglo alleged he had not given the bank a full picture of his financial health. The bank said he provided it with an original statement of affairs, showing a net worth value of "minus €9m". But this did not list more than 14 properties including his family home in Foxrock and other assets including a shareholding in a yacht charter company and an interest in 12 foreign and colonial companies.

In reply to Anglo, solicitors for Mr Browne disputed the bank's claims about his statement of affairs and alleged the bank was jumping to hasty, unfounded and grossly unfair conclusions. The solicitors noted Mr Browne had transferred his interest in his family home in 2008 to his wife.

A solicitor for Mr Browne told Mr Justice Peter Kelly at the Commercial Court yesterday her client was consenting to have the case fast-tracked by the court but she had no instructions yet whether a defence was being raised or its nature.

The case was adjourned until Friday.

Irish Independent

Promoted articles

Also in Business