Thursday 12 December 2019


May 2003 The Abingdon, Malahide home of David and Lorraine Drumm is registered in both names. Both are entitled to a legal half share in the property. December 12, 2008 Drumm, then CEO of Anglo, resigns after its chairman Sean FitzPatrick steps down in disgrace after revelations about "warehousing" of directors' loans with Irish Nationwide. Anglo, nationalised in January 2009 amid further scandals, pursues some of its directors -- including FitzPatrick and Drumm -- for outstanding loans owed to the bank.

January 2009 David Drumm applies for a visa to move to US.

May 13, 2009 Abingdon transferred into the sole name of Lorraine Drumm who owes the bank no money. Drumm family move to US in summer and put the home up for sale for €2.79m. September 9, 2009 Anglo seek an irrevocable undertaking from the Drumms that they will retain the proceeds from any sale of Abingdon within Ireland.

October 1, 2009 Lorraine Drumm gives undertaking not to dispose of any interest in Abingdon.

November, 2009 Anglo sues David Drumm for the recovery of €8.5m in loans. Most of this sum relates to refinancing of a loan which allowed him invest in Anglo shares. Anglo also launches separate proceedings against David and Lorraine Drumm, seeking to undo the May 2009 transfer of Abingdon.

Anglo claims this property was Mr Drumm's main asset and the transfer is void as a fraud on creditors because it would mean the property -- and his original half share -- cannot be used to reduce his debts. The Drumms claim the transfer was "for taxation reasons" and not designed to protect the property from claims by creditors.

January 2010 Anglo agrees the case should go to a full hearing -- set for October 26, 2010. Behind the scenes, Anglo and Mr Drumm pursue a settlement. The talks are contingent on a transfer of his pension and a commitment by him to return to Ireland to help with inquiries into Anglo.

October 14, 2010 Anglo receives a phone call to say that David Drumm has filed for bankruptcy in Massachusetts. The bank goes straight to the High Court in Dublin as the US petition triggers a worldwide stay on any litigation. Anglo fears that by pursuing its claim against David Drumm in Dublin, it will fall foul of the jurisdiction of the US Trustee in bankruptcy. The hearing is set for October 19, 2010.

October 18, 2010 At 7.07pm, Irish time, Anglo receives a letter from Lorraine Drumm's solicitors purporting to "settle" the action against her by transferring ownership of Abingdon back into joint names without any admission that the May 2009 transfer from joint names to her name only was intended to defraud Anglo.

October 19, 2010 Anglo is granted a temporary injunction preventing the planned re-transfer. The bank fears that now Drumm has filed for bankruptcy, any asset -- namely his original half share in Abingdon -- that is transferred to him after October 14 will be beyond the reach of the US Trustee in bankruptcy and beyond the reach of Anglo itself.

Irish Independent

Editor's Choice

Also in Irish News