Drumm's wife agrees to set aside original home transfer into her name

THE WIFE of former Anglo Irish Bank chief executive David Drumm has agreed that the controversial May 2009 transfer into her sole ownership of the couple’s former luxury home in Co Dublin should be overturned.

The agreement effectively brings to an end legal proceedings here by Anglo against Lorraine Drumm but the case against her husband remains outstanding.

Mr Justice Peter Kelly was told at the Commercial Court yesterday Mrs Drumm is prepared to give her “irrevocable consent” to the setting aside of the May 2009 transfer of the ownership of the property at Abington, Malahide, from the joint names of the Drumms into her sole name.

Anglo, which claimed the May 2009 transfer was “a fraud on creditors” of Mr Drumm – the couple insisted it was for “taxation reasons” – was prepared to accept that irrevocable consent, he was also told.

However, no final order setting aside the transfer can be made yet because matters have been complicated by Mr Drumm’s action in filing for bankruptcy in the United States last week and because he is also a party to the transfer arrangement, John Hennessy SC, for Anglo, said.

Because the US trustee in bankruptcy was now involved – by virtue of all Mr Drumm’s assets being vested in the trustee – a final order setting aside the transfer could not be made now.

Instead, Mrs Drumm was giving her irrevocable consent to the setting aside of the May 2009 transfer whenever that could be done, and Anglo was accepting that in effective settlement of its action against her, listed for next Tuesday.

Counsel also asked that an injunction granted to the bank last Tuesday which restrains Mrs Drumm from proceeding with her proposal to re-transfer the property back into the couple’s joint names remain in place until Tuesday next. While casting no aspersions on Mrs Drumm, the injunction provided stronger security for the bank than an undertaking being proposed by her, counsel said. Mr Justice Kelly said he would continue the injunction to Tuesday.

The judge also asked Mr Hennessy whether there was any indication from the US trustee whether she intended to appear at next Tuesday’s listing of the Anglo proceedings against Mr Drumm over unpaid loans of €8.5 million. Mr Hennessy said he was only aware of media reports suggesting certain steps were being taken by the trustee.

The US trustee has applied to the courts there to instruct counsel concerning the action here against Mr Drumm, which had been scheduled for hearing next Tuesday but has been put on hold pending notification to the Commercial Court of the trustee’s stance on the proceedings. Mr Justice Kelly has asked that the trustee inform him next Tuesday what position she intends to adopt.

The action against Mr Drumm was due to open next Tuesday at the Commercial Court with the case against Mr and Mrs Drumm over the Abington transfer to be heard immediately afterwards. Both cases were put on hold after Mr Drumm’s filing for voluntary bankruptcy in the US.