Sunday 19 November 2017

David Drumm brother must repay €167,843

Ken Drumm, brother of former bank chief, David Drumm pictured arriving at the Four Courts
Ken Drumm, brother of former bank chief, David Drumm pictured arriving at the Four Courts

Tim Healy

A BROTHER of former Anglo Irish Bank chief executive David Drumm has been ordered to repay €167,843 after defaulting on loans he got from the bank and on hire purchase agreements related to cars.

However, a dispute over Ken Drumm's liability to IBRC for €51,733 arising from a 2008 loan of €50,000 to buy shares in Anglo was sent to hearing.

Mr Justice Daniel Herbert ruled that Mr Drumm, inset, had an arguable defence because Anglo stood by as the shares fell to zero.

Mr Drumm had also raised an arguable defence as to IBRC's entitlement to charge "penalty" interest on some of the sums outstanding. But there was no arguable defence to repayment of other sums totalling €167,843.

IBRC sought judgment for €234,000 over Mr Drumm's failure to meet repayments on loan and hire purchase agreements that he or his former company entered into with Anglo between 2006 and 2008. One of the agreements, of January 2006, related to the hire purchase of a BMW car for Mr Drumm's firm, Shrewsbury Developments Ltd, which has since been struck off the Companies Register. He signed an indemnity making him liable for the debt, of €91,190, when it fell into arrears in January 2010, IBRC claimed.

Mr Drumm used €50,000 from another loan to help buy €75,000 of Anglo shares, and IBRC alleged he was liable for that debt.

RECOURSE

But Mr Drumm said Anglo officials told him there would be no personal recourse to him, because security for the loan was in the shares themselves.

The judge noted that Mr Drumm had argued IBRC's claim for some €7,000 interest on the €50,000 loan was not enforceable due to Anglo allegedly overcharging interest on customer accounts.

He had an arguable defence to "penalty" interest claims in that regard and those matters would go to a plenary hearing.

Irish Independent

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