Drumm's bid to settle loan action rejected by Anglo
NATIONALISED Anglo Irish Bank has rejected a series of proposals from its former CEO David Drumm aimed at settling an action over €8m in unpaid loans.
The bank has declined Mr Drumm's offer but made a counter-proposal to him on July 14, Mr Justice Peter Kelly was told in the Commercial Court yesterday.
Barry O'Donnell, for Anglo, said unless something came from that counter-proposal, the action against Mr Drumm would proceed as scheduled in October.
Declan McGrath, for Mr Drumm, said his side had sought clarification related to matters in the counter-proposal.
The proposals advanced involved a considerable number of parties and the judge directed the court should be informed on July 30 of Mr Drumm's response to the counter-proposal.
If it (counter-proposal) is not accepted, the full hearing of the bank's proceedings against Mr Drumm will begin on October 26.
Mr Drumm, who resigned in December 2008 as CEO of Anglo, claims that the bank's demand for immediate repayment of the January 2008 loans for €8m breaches his loan agreements.
He has counter-claimed his employment was not validly terminated in early 2009 and that Anglo owes him €2,620,695 in salary, pension and deferred bonus payments. He also wants damages, including a claim for "mental distress".
After the €8m loans action concludes, the court is then expected to hear Anglo's action against Mr Drumm and his wife Lorraine to set aside Mr Drumm's transfer of the family home at Abbington, Malahide, Co Dublin, to his wife.
Anglo claims the transfer is a fraud on creditors but the couple, now living in Cape Cod, US, claim it was for "taxation reasons".