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FitzPatrick wants to be declared bankrupt

SEAN FitzPatrick, the man who steered Anglo Irish Bank to record-setting losses, is just days away from being declared bankrupt.

The former Anglo chairman told the High Court he would apply on Monday to declare himself bankrupt after Anglo this week blocked a proposed settlement deal with creditors.

The banker has liabilities of almost €150m, including bank loans of more than €80m, and had argued his creditors would do best under his proposed deal.

Mr FitzPatrick has substantial assets but the value has been hit by the property crash.

He had put together a scheme which was placed before a meeting of creditors this week but following opposition from Anglo, his largest creditor, it could not go ahead.

At the creditors' meeting, Mr FitzPatrick said he accepted full responsibility for "my own ruin" and expressed deep regret to all creditors. He also said he had, throughout his business dealings and during his time in Anglo, acted in good faith and believed he was acting prudently and properly.



DANGER

Mark Sanfey, for Mr FitzPatrick, told Mr Justice Brian McGovern it was in circumstances where his proposed settlement could not proceed that Mr Fitzpatrick wanted to "pull the plug" on the process and to petition the court on Monday to be made bankrupt.

Because Anglo is Mr Fitzpatrick's largest creditor, he had taken the view there was no point with proceeding with a private court sitting on Monday as he would not achieve the necessary majority to go ahead with his settlement scheme.

The judge queried, if the court protection order which had restrained creditors moving against Mr FitzPatrick was lifted, there was any danger he would be able to deal with his assets as he wished.

Mr Sanfey said he was instructed to provide an undertaking to the court that Mr FitzPatrick would not deal with his assets. On the basis of that undertaking, the judge agreed to lift the protection order.

Mr FitzPatrick had offered his home and half of his pension as part of the proposed settlement deal with his creditors. It provided they would be repaid part of their debts over time.

hnews@herald.ie


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