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'Broke' Drumm redecorates €1.2 home

EX ANGLO banker David Drumm, who has filed for bankruptcy, is redecorating his new $2m (€1.4m) home in Boston.

The former Anglo Irish Bank chief executive had painters and decorators working on the house in Wellesley on the outskirts of the city.

Mr Drumm (44) filed for bankruptcy with debts of €10.26m last month.

He was expected to attend a court in Boston today for a meeting with State-owned Anglo, which is owed €8.5m, and other creditors.

It emerged last week that Mr Drumm had changed his address and moved to another expensive home nearer to Boston.

He has been living in the United States for some time and owns a property in Chatham in Cape Cod, Massachusetts, said to be worth about $6m (€4.4m).

In his bankruptcy filing, Mr Drumm said he has a beneficial interest in the trust which bought that house.

But Mr Drumm also told the court the $6m house is his homestead, which means the court will protect the first $500,000 of the equity in that home.

It is possible Mr Drumm will end up with a beneficial interest in two houses in the most expensive parts of the US after his bankruptcy.

Mr Drumm moved to Massachusetts in December 2008 after resigning as chief executive of Anglo.

The Wellesley house was bought through a property trust -- thereby protecting it from creditors -- earlier this year.

However, news that workers have been employed to carry out improvements to the property has raised further questions about the true state of his finances.

comurphy@herald.ie


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