Former clients of IBRC to challenge bankruptcy bid
Plaintiffs say sole purpose of bank's US action is to 'frustrate' another case, writes Ronald Quinlan, Special Correspondent
AN attempt by the special liquidator of the IBRC to secure Chapter 15 bankruptcy protection in the United States is to be challenged by a number of the bank's major clients in the courts of Delaware next Friday, the Sunday Independent can reveal.
John Flynn, the developer behind large parts of Dublin's Smithfield and the Burlington Plaza office complex is among a number of the former Anglo Irish Bank's borrowers bringing the case, which if successful, could leave the IBRC's assets in the United States vulnerable to claims from creditors.
The IBRC's special liquidators Kieran Wallace and Eamon Richardson applied for Chapter 15 bankruptcy protection in Delaware on August 26 in an effort to protect the bank's estimated $1bn (€750m) in US assets from seizure by creditors during the current liquidation process.