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Anglo to decide on Drumm's €8m loans settlement

FORMER Anglo Irish Bank CEO David Drumm has made a series of proposals in an effort to settle the bank's action against him for repayment of loans of more than €8m.

In the Commercial Court yesterday, Mr Justice Peter Kelly asked the bank to indicate in two weeks time whether it is saying yes or no to the settlement offer.

Declan McGrath, for Mr Drumm, had earlier told the judge proposals had been made in an open letter from Mr Drumm written to Anglo two weeks ago but there was as yet no "substantive" reply.

His side was anxious to know Anglo's response as this would impact on the continuing costs being incurred in preparation for the hearing of the proceedings against Mr Drumm, fixed for next October, counsel said.

John Hennessy, for Anglo, said Mr Drumm's letter was "under consideration".

When Mr Justice Kelly asked when there was likely to be a response, Mr Hennessy said he could not say. The judge said the bank had the letter for two weeks, it was a matter of "yes or no" and it should indicate to the court in two weeks time what its response was.

Earlier, the judge had awarded costs to Mr Drumm's side arising from the resolution of discovery (legal disclosure) issues between the sides.

After receiving an additional affidavit from Anglo CEO Mike Aynsley outlining the basis for the bank's claim of privilege over certain documents being sought by Mr Drumm, including documents relating to directors' loans and emails between former Anglo Chairman Sean FitzPatrick and Mr Drumm, Mr McGrath said his client was no longer seeking those documents.

Mr Justice Kelly ruled Mr Drumm was entitled to the costs of the motion over privilege as the court had ruled the initial claim of regulatory privilege was not fully set out by Anglo as required by the rules of court.


After the loans action concludes, the court is due to hear Anglo's action against Mr Drumm and his wife Lorraine to set aside Mr Drumm's transfer of the family home at Abbington, Malahide, Co Dublin, to his wife.

Anglo claims the transfer is a fraud on creditors but the couple, now living in Cape Cod, US, claim it was for "taxation reasons".