Drumm goes it alone as $250k firm loan dwindles to $300
Published 10/08/2011 | 05:00
DISGRACED former Anglo Irish Bank chief executive David Drumm has just $300 (€210) left from $250,000 loaned by his wife to fund his US consulting company.
Now Mr Drumm is striking out on his own and will be "consulting directly" while folding Delta Corporate Finance, after enjoying a $9,000 (€6,280) monthly salary from the business.
Fresh details of Mr Drumm's business interests in America emerged in bankruptcy proceedings yesterday where Mr Drumm continued to stonewall attorneys for his former employer Anglo Irish Bank.
He failed to hand over important information on his personal finances, despite being given time to produce documents since a previous hearing in April.
However, it emerged that Mr Drumm is folding his company Delta Corporate Finance.
"It's just me," he said. "It's just a consulting business. I didn't need it."
He said he is making an income from his new version of his consultancy service, which involves him working on his own, as opposed to running a business.
The $250,000 (€174,000) in working capital loaned from his wife, from which he paid himself a salary of $9,000 (€6,280) per month, has essentially dwindled to about $300.
It's unclear whether he is still taking a salary, or when he stopped taking a salary, from the business. He merely said: "I'm earning an income through consulting services."
This is expected to have been Mr Drumm's final creditor's hearing -- known in America as a "341 bankruptcy meeting" -- as a trustee in the case promised to use "other ways" to get the documents.
Mr Drumm is likely to face a public trial into his finances early next year, unless there is a settlement in the meantime.
Yesterday he again failed to produce documents he had told the lawyers he would give them, including a schedule of loan repayments to his wife, Lorraine Drumm.
He also failed to provide the value of possessions in a storage facility and a bill for shipping his belongings from Ireland to the US.
The hearing at Boston law firm Murphy & King had been repeatedly postponed since the last session in April.
During yesterday's hearing Mr Drumm faced about an hour of questions from trustee Kathleen Dwyer and Anglo lawyer Kenneth Leonetti.
The next step will be the trustee reviewing documents and deciding whether to object to what Mr Drumm has claimed are exempt from the creditor.
She has 30 days to do this, and then a trial would follow in 2012.
•Anglo Irish Bank was last night awaiting news of whether the sale of its $9.5bn (€6.6bn) US loan book will be derailed by the debt crisis across the Atlantic.
First bids for the loans on were due in by 5pm New York time, or 10pm Irish time.
Global finance heavyweights like Deutsche Bank and Goldman Sachs had shown interest in the 248 loans, which cover commercial projects from Manhattan to Florida.
But sources last night admitted that the dramatic events of the last few days could have an impact on some bidders' ability to find the cash to do a deal.