Saturday 24 March 2018

Anglo seeks US court approval to question former CEO

Shane Phelan and Dearbhail McDonald

ANGLO Irish Bank is seeking the permission of a US court to question its former chief executive David Drumm over the accuracy of financial information he provided when filing for bankruptcy last month.

The nationalised bank, which is owed €8.5m by Mr Drumm, filed a motion with a bankruptcy court in Boston last night, calling into question several aspects of the bankruptcy petition. A decision on the motion could be made as early as next week when Mr Drumm is due to meet creditors at a courthouse in Boston.

The former banker filed for bankruptcy last month, stating he owed creditors €10.26m while holding assets worth €9.99m.

In court papers seen by the Irish Independent, Anglo lawyers raised questions over the asset list provided by Mr Drumm and claimed there was "good cause" for an in-depth examination.

In particular, the bank wants to ask him about his investments and sources of income. It also wants to question him about his activities during his period as chief executive between 2005 and 2008.


As part of the petition, Anglo is seeking access to documents relating to:

  • Mr Drumm's income from a financial advisory business, Delta Corporate Finance.
  • Records relating to all income earned by him between 2004 and 2009.
  • His use of loans from Anglo and other banks.
  • All property dealings.
  • Sources of income of Mr Drumm's wife, who it is claimed has loaned him €153,000.
  • Funds transferred to his wife and other family members.
  • A deed of covenant in favour of Mr Drumm's mother and sums claimed for property improvements by his sister.

The bank has also raised questions about Mr Drumm's status in the US. It wants to know the extent to which Mr Drumm is complying with his visa requirements and whether he has applied for residency status.

The bank also wants disclosure of information connected to legal proceedings it instigated against Mr Drumm and his wife in Ireland and a counterclaim he has made against the bank.

Mr Drumm is suing Anglo for €2.6m in unpaid salary, benefits and deferred bonuses. He included the sum in a list of assets supplied to the US courts.

However, in court filings yesterday, Anglo described the counterclaim as "meritless" and having "no basis in law or fact".

Irish Independent

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