Monday 20 November 2017

Anglo may seek more than €8.5m from Drumm

Shane Phelan Investigative Correspondent

ANGLO Irish Bank may pursue its former chief executive David Drumm for more than the €8.5m it says he already owes them.

The nationalised lender has indicated in a US court that further claims could be made against Mr Drumm (44), who has filed for bankruptcy in Boston.

The former bank boss has been living in the US for the past two years after stepping down from the helm of Anglo.

In documents lodged in court yesterday, the bank's lawyers said Anglo "may have additional claims" against Mr Drumm.

The bank has also asked a judge to allow it more time to provide proof that Mr Drumm may owe it more money.

Creditors had been given until January 24 to make claims against Mr Drumm, but Anglo now wants this deadline extended until February 14.

A judge is expected to rule on the application in the coming days.

Lawyers for Anglo did not reveal what the value of the bank's potential extra claims against Mr Drumm might be or what they might relate to.

However, it is already known Anglo has raised serious questions over the accuracy of personal financial information provided by Mr Drumm to the bankruptcy court.

Much of the €8.5m already said to be owed to Anglo by Mr Drumm was money borrowed to buy shares in the bank.

The shares are now worthless following the lender's nationalisation.

Anglo's lawyers said they would "explore the facts and circumstances" surrounding the potential additional claims at a meeting next month.

As part of the bankruptcy process, Mr Drumm is set to be questioned under oath by lawyers for the bank at a date yet to be set between February 14 and 28.

The revelation of further potential debts comes as another headache for the embattled former banker.

Earlier this week Chase Bank in America filed a lawsuit against Mr Drumm alleging he fraudulently obtained credit from them shortly before he filed for bankruptcy.

Court papers revealed Mr Drumm maxed out a €10,500-limit credit card in the weeks before he filed for bankruptcy.

Irish Independent

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