Ex-CEO's wife drops opposition to Anglo case over luxury home
Published 22/10/2010 | 05:00
THE wife of former Anglo boss David Drumm yesterday dropped her opposition to a case taken by the bank suing them over their luxury home at the exclusive Abington estate in Malahide, Co Dublin.
Anglo Irish Bank took the case against David and Lorraine Drumm over the controversial transfer in May 2009 of their luxury home into Mrs Drumm's name only.
The bank, which is suing Mr Drumm for €8.5m in unpaid loans, claimed the original move was "a fraud" on his creditors and an attempt by its former CEO to keep his half-share of the exclusive property.
Anglo cried foul again this week when Mrs Drumm -- now living in the US, where her husband has filed a voluntary bankruptcy petition -- offered to transfer the property back into both names.
Anglo claimed the new move would permanently put Mr Drumm's half-share beyond its reach.
This is because, under US bankruptcy laws, an asset acquired by a person after they have filed for bankruptcy can not be brought back into the proceedings.
The move would have left Anglo without a potential "claw-back" remedy.
Lawyers for Mrs Drumm yesterday told the Commercial Court she has agreed that the May 2009 transfer into her sole ownership of Abington should be overturned.
The agreement effectively brings to an end legal proceedings here by Anglo against Lorraine Drumm. The bank's cases against her husband have yet to be decided.
Mr Justice Peter Kelly was told Mrs Drumm was prepared to give her "irrevocable consent" to the setting aside of the May 2009 transfer of the ownership of the property at Abington, Malahide, from the joint names of the Drumms into her sole name.
A court order setting aside the transfer cannot be made yet because Mr Drumm, who is also a party to the transfer arrangement, has filed for bankruptcy in the US.
All of Mr Drumm's assets throughout the world are now vested in the US Trustee in Bankruptcy as a result of the proceedings.