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Tuesday 2 September 2014

US ruling on Drumm's bankruptcy is imminent

Donal O'Donovan

Published 17/07/2014 | 02:30

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A DECISION on whether David Drumm can emerge debt free from his US bankruptcy is now imminent.

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On Tuesday, lawyers in Boston filed their final legal papers in relation to the case, which has been running since 2010.

Mr Drumm has debts of €10.5m, including €8.5m owed to IBRC.

Judge Frank Bailey had set a July 15 deadline for lawyers for Mr Drumm, as well as for IBRC, the former Anglo Irish Bank, and for Kathleen Dwyer, the official trustee overseeing the Drumm case, to submit papers setting out their final legal arguments and the facts they say they are relying on in relation to the case.

He will deliver his final verdict once those papers have been considered.

IBRC and Ms Dwyer are jointly trying to block the former Anglo Irish Bank chief executive emerging debt free from his US bankruptcy.

In their final 167-page submission, lawyers John Hutchinson and Kenneth Leonetti for IBRC, and Andrew Lizotte for Ms Dwyer, claim that Mr Drumm should be denied the benefits of a bankruptcy discharge because, they claim, he fraudulently attempted to hide cash and property transfers made to his wife Lorraine Drumm from bankruptcy officials. Mr Drumm lied in sworn statements, they claim.

If his discharge is blocked, Mr Drumm faces the prospect of having to repay his historic debts, mainly owed to his former employer, from his future income. In the worst-case scenario, a finding of perjury could lead to criminal charges.

Trial

During the six-day bankruptcy trial in June, Mr Drumm admitted making "lots of errors" in his original bankruptcy papers, but said there was no intention to hide facts in relation to cash or property.

In his final 69-page submission, Mr Drumm's lawyer, John Mack, argued that his client should be allowed to emerge from bankruptcy, and that there is "absolutely no evidence that David Drumm intended to hide assets". The former banker took "immediate steps" to correct the omission when he discovered that there were issues with his papers, Mr Mack said.

Irish Independent

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