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Tuesday 23 September 2014

IBRC sued for $3m by David Drumm’s bankrupt estate

Published 27/05/2014 | 14:29

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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

Taxpayer-owned IBRC is being sued for over $3m allegedly owed to David Drumm's bankrupt estate.

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The claim for unpaid salary and compensation has been taken against the nationalised bank, now in liquidation, by bankruptcy trustee Kathleen Dwyer, the court in the Drumm bankruptcy case was told today.

The Drumm case  resumed today at the David W McCormack Post Office and Court House in Boston, following a break for the Memorial Day long weekend.

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 he denies fraud.

Lorraine Drumm is expected to give evidence tomorrow.

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