Challenge by former Anglo chief allowed by High Court
Published 17/12/2010 | 05:00
A FORMER key executive of Anglo Irish Bank has been allowed to challenge his former employers who are trying to force him to repay millions of euros in loans from the bank.
Tom Brown, a former head of Anglo's lending division, claims he would not have taken some of the loans if he knew what was going on in the bank in relation to Sean Quinn.
Mr Browne is entitled to defend the claim on grounds including the bank was guilty of fraudulent misrepresentation in allegedly failing to inform him of matters relating to the purchase of 28pc of its shares by businessman Sean Quinn, Mr Justice Peter Kelly said.
Mr Browne claims Anglo advanced millions of euro to him in late 2007 to buy its shares when it, the financial regulator, and other State authorities, all knew it had loaned substantial sums of money to Mr Quinn in November 2007 to support and fund Mr Quinn's liabilities concerning 'Contracts for Difference' transactions made to fund the purchase of shares in Anglo itself.
The bank had failed to tell him about these matters which, if known on the financial markets, would have had "a devastating effect" on Anglo's stability and share price, Mr Browne claims.
Anglo sought summary judgment for separate sums of £31.6m and £1.91m; €11.6m million and $765,976 arising from loans to Mr Browne, including a loan to buy property at Bishopsgate, London.