Anglo bides time in legal showdown with Drumm
Published 19/10/2010 | 05:00
ANGLO Irish Bank may ask the High Court for a "short" postponement to a legal showdown with its former boss David Drumm so it can work out how best to pursue Mr Drumm's €8.5m loans.
The loan dispute between Anglo and Mr Drumm was due to be mentioned in the High Court today, despite Mr Drumm's 11th-hour decision to apply for bankruptcy in the US late last week.
Anglo had been keen to progress matters with Mr Drumm, but in light of last week's surprise bankruptcy announcement, the bank is understood to be leaning towards asking for a postponement so it can "review its options".
Anglo is believed to be considering the merits of applying for Mr Drumm to be made bankrupt under Irish law, which could push his homes into the pot creditors can take from.
The bank is also considering how it might co-operate with the US bankruptcy process.
Senior executive Tom Hunerson is understood to be already in the US, monitoring events. "The important thing from the bank's point of view is to get it right," said one source.
Anglo is understood to be exploring some options that could see some of Mr Drumm's €5.4m pension brought back into the creditors' pool, with sources stressing that "nothing" was being ruled out.
The bank is not overly concerned about the prospect of losing out to other Drumm creditors since it believes "about 95pc" of the banker's loans are owed to his former employer.
As well as the loans case, the two parties are also embroiled in litigation over €2.6m in payments Mr Drumm believes he is owed, and the transfer of his share in the family home to his wife.