Tuesday 21 November 2017

Gayle Killilea ready for questions on husband Sean Dunne's bankruptcy

Trustee of Sean Dunne's affairs to interview her on order of US court

Gayle Killilea Dunne and Sean Dunne
Gayle Killilea Dunne and Sean Dunne

RONALD QUINLAN Special Correspondent

GAYLE Killilea is prepared to answer questions posed by her husband Sean Dunne's bankruptcy trustee . . . it just depends what those questions are.

Commenting on the instruction given last Friday by a US court for Ms Killilea to attend at the office of bankruptcy trustee Richard Coan for interview, a source familiar with the matter told the Sunday Independent: "Gayle has no problem with this. Her lawyers will be looking to reach agreement with the trustee on the parameters of the Rule 2004 examination in the coming days."

Should Ms Killilea be satisfied with the terms proposed for her interview, it is expected to take place in private at Mr Coan's office in New Haven, Connecticut on June 8.

Rule 2004 examinations are sought routinely by US bankruptcy trustees. In such cases, the trustee can compel testimony and the production of documents from just about anyone with any form of connection to the person seeking to be discharged from bankruptcy.

The scope of Rule 2004 examinations is broad enough to include any action, including but in no way limited to: the acts, conduct, property, liabilities or financial condition of the bankrupt, any matter which might affect the administration of their estate or anything that could affect their right to a discharge.

In seeking permission from the court to question Ms Killilea about assets and cash transferred to her, Mr Dunne's bankruptcy trustee cited the repeated failure of the Carlow-born developer to produce documents relating to Swiss family law proceedings taken by Ms Killilea relating of a transfer of €33m ($44m) to her.

While Ms Killilea has argued previously that she has been subjected to wide-ranging and intrusive requests for information, despite the fact that she is not a Nama debtor, Mr Dunne had sought to put the Swiss proceedings into context when giving evidence at a meeting of his creditors last December.

Asked to account for monies he had transferred to his wife, the former 'Baron of Ballsbridge' revealed how he had come to an agreement with Ms Killilea in 2005 following the birth of their first son, Bobby Luke, in which he pledged to provide her with €100m to ensure her financial independence in return for her "love and affection".

As part of the arrangement, Mr Dunne said he gave Ms Killilea some €60m in "one lump or close to it" to buy Walford on Shrewsbury Road. The Edwardian mansion broke all records when Ms Killilea acquired it for €58m that same year.

Asked by Nama's US attorney Tom Curran if he thought it unusual that a wife would sue her husband, as Ms Killilea had when she obtained a judgment of €31m ($44m) against him in Switzerland in 2010, the developer said: "I can't account for the actions of other people. When I owe money, I don't contest it".

Mr Dunne confirmed that Ms Killilea had taken legal steps to ensure the post-nuptial financial agreement they had drawn up in 2005 was honoured.

Sunday Independent

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