Business Irish

Wednesday 17 September 2014

IBRC asked hotelier to withdraw complaint against Ernst & Young

Published 03/12/2012 | 05:00

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IBRC, the former Anglo Irish Bank, asked Dublin hotelier Johnny Moran to withdraw a complaint against Ernst & Young – among a number of proposals from the bank aimed at negotiating settlement of debts of almost €20m.

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The settlement proposal was made in July, just months before the bank decided to sue the firm itself, the Irish Independent has learned.

The one-time owner of the Holiday Inn in Dublin's Pearse Street had raised a complaint with the Chartered Accountants Regulatory Body ( CRB) in April, following Irish bank Resolution Corp's (IBRC) appointed of accountancy firm Ernst & Young as receivers to his businesses in 2011.

He initiated the complaint on several grounds, including a potential conflict of interest because of the fact that the accountancy firm was Anglo's auditor in the period when his businesses had taken on debts from the bank.

IBRC has since begun its own action against Ernst & Young in relation to its previous work as the bank's auditor.

The Irish Independent has learned that the bank made a written proposal last July to Mr Moran, which included asking him to withdraw his complaint against Ernst & Young as part of a proposed settlement agreement between him and the bank.

It was just one of 27 proposals that were put to Mr Moran in a proposed settlement that was subsequently not agreed upon.

IBRC said last night it could not comment because of ongoing litigation.

Ernst & Young declined to comment.

Sources at the bank said the appointment of Ernst & Young as receiver over Mr Moran's businesses had been made before the completion of an internal review of its former role as Anglo's auditor.

Collapse

IBRC last week initiated legal action against Ernst & Young in relation to its work as auditor of the bank in the years leading up to its collapse into nationalisation.

Mr Moran has been engaged in long-running legal efforts seeking to reverse the appointment of receivers to his businesses.

These efforts are set to continue at the Commercial Court.

The actions were initiated after he failed to prevent receivers taking control of the businesses, initially even by locking the receiver and their management company out of two properties.

Receivers were appointed after he failed to repay €18m owed to the former Anglo when the bank called in its loans early last year.

Irish Independent

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