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Wednesday 17 September 2014

David Drumm case resumes in Boston after Memorial Day break

Published 27/05/2014 | 13:34

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David Drumm and his wife Lorraine outside the US Bankruptcy Courthouse in Boston
David Drumm and his wife Lorraine outside the US Bankruptcy Courthouse in Boston

Former Anglo Irish Bank chief executive David Drumm's bankruptcy case has resumed in Boston, following a break for the Memorial Day long weekend.

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Bankruptcy trustee Kathleen Dwyer is giving evidence for a second day. Under the US system she is the official charged with liquidating Mr Drumm's assets to help repay his debts.

The former bank boss filed for Chapter 7 personal bankruptcy protection from creditors in 2010, after moving to the US.

The case has ended up in court because IBRC, the former Anglo Irish Bank and Kathleen Dwyer are seeking to block Mr Drumm's discharge debt free from bankruptcy. IBRC is owed €8.5m by Mr Drumm and is his biggest creditor.

They say he is not entitled to the fresh start offered under US law, because Mr Drumm tried to hide assets and defraud creditors by failing to declare transfers of cash and property to his wife Lorraine Drumm that occurred in the two years prior to his bankruptcy.

Mr Drumm has admitted to "errors" in his paperwork, but says it was based on misunderstanding and denies that there was any fraud. Lorraine Drumm is expected to give evidence tomorrow.

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