Saturday 24 February 2018

Drumm relatives' claim for cash from bankruptcy blocked

Bankrupt David Drumm
Bankrupt David Drumm
Shane Phelan

Shane Phelan

Relatives of disgraced banker David Drumm should not be allowed make claims against his bankruptcy estate, according to a court-appointed insolvency official.

Mr Drumm's sister Susan and mother Mary were both listed as creditors after the former Anglo Irish chief filed for bankruptcy in the US five years ago.

However, bankruptcy trustee Kathleen Dwyer has asked a court in Massachusetts to disallow their claims.

The development is the latest twist in the protracted bankruptcy case. Mr Drumm, who has debts of over €10m, is currently appealing a decision to deny him a discharge from bankruptcy after a court found he had told "outright lies" about his financial affairs.

In papers filed with the US Bankruptcy Court, Ms Dwyer said she wanted to move ahead with the distribution of Mr Drumm's assets to creditors.

As part of the process, she said she was allowing some creditor claims and disallowing others. Each move will require court approval.

Among the claims she wishes to disallow are one from Mr Drumm's sister Susan for $13,828 (€12,704) for work done to a house in Skerries, Co Dublin, owned by Mr Drumm and his wife Lorraine.

The trustee said the sum was claimed under the terms of a lease agreement with Susan Drumm which allowed her a pro rata refund for sums spent on house maintenance.

She said Susan Drumm had not provided documentation to substantiate the claim and had not demonstrated a right to payment under the terms of the lease.

The trustee said she had abandoned her interest in the property in September 2012 because of a lack of equity.

Ms Dwyer said that in the two years the property was part of the bankruptcy estate, no rent payments were made to her. She also argued that the rent due could be set off against Susan Drumm's claim.

Ms Dwyer also argued that a $14,249 (€13,089) claim made by Mr Drumm's mother Mary should also be disallowed.

The claim related to a deed of covenant entered into by Mr Drumm in 2005 where he agreed to pay his mother €4,500-a-year for a period of seven years.

Ms Dwyer said she believed the terms of the deed had expired and Mrs Drumm had been paid what she was owed.

She said she wished to allow the Irish Bank Resolution Corporation, the former Anglo, enter claims against the estate for $11.9m (€10.9m). Much of this was money borrowed from Anglo to buy shares in the bank.

Irish Independent

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