herald

Wednesday 18 October 2017

Drumm asks to go bankrupt in the US

FORMER Anglo Irish Bank boss David Drumm has filed for voluntary bankruptcy in the US, the High Court heard yesterday.

The surprise development is expected to affect legal actions involving Mr Drumm and his wife Lorraine, fixed for hearing in the Commercial Court later this month.

The proceedings, in which Anglo had sought the return of €8m loans from Mr Drumm, now living in Cape Cod, Massachusetts, were listed for hearing before the Commercial Court on October 26 with proceedings involving Mr Drumm and his wife to be heard immediately afterwards.

Yesterday, the High Court was told by Brian O'Moore SC, for Mr Drumm, that at 3pm Irish time yesterday Mr Drumm had gone to the bankruptcy court in Massachusetts and filed a voluntary petition for bankruptcy which would divest all of his assets worldwide and vest them in the Trustee in Bankruptcy in the US.

This action had a number of effects and Mr Drumm's Irish lawyers thought it necessary to bring it to the attention of the court, counsel told Mr Justice Brian McGovern.

Barry O'Donnell, for Anglo, said this was "quite an extraordinary turn of events" of which his client had only just become aware in the last few moments.

hnews@herald.ie

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