US official to outline status of Drumm case

THE US official administering the bankruptcy of former Anglo Irish Bank chief executive David Drumm is expected to indicate to the Commercial Court shortly whether she intends to maintain his defence to proceedings in which the bank is seeking orders requiring Mr Drumm to repay loans of approximately €8 million.

Kathleen P Dwyer must also indicate whether she intends to proceed with Mr Drumm’s counter-claim to Anglo’s proceedings.

Mr Drumm in these proceedings is seeking some €2.6 million in salary, pension and deferred bonus payments and damages, including for “mental distress”.

Those proceedings against Mr Drumm, plus a separate action by the bank against Mr Drumm and his wife, Lorraine, over his disputed transfer of the couple’s former family home in Malahide into Ms Drumm’s sole ownership, were mentioned at the Commercial Court in Dublin yesterday before Mr Justice Peter Kelly.

Both cases had been adjourned pending a decision by another High Court judge as to whether the courts here would recognise the US bankruptcy proceedings and assist Ms Dwyer in realising the assets of Mr Drumm here, including the property at Abington, Malahide, for the benefit of his creditors.

Paul Sreenan SC, for Anglo, told Mr Justice Kelly yesterday that the High Court had ruled this week in favour of assisting Ms Dwyer but had adjourned the matter for a week to have the “order in aid” drawn up, after which the trustee would seek an order in these proceedings. In those circumstances, the bank wanted the proceedings against the Drumms adjourned for one more week.

Mr Justice Kelly said he would grant the adjournment but would like to see “some progress” in the matter.

Because Ms Drumm had last month given an irrevocable undertaking to set aside the transfer of the property at Abington, it was already known what the final order would be concerning the proceedings over the house, but he would like to have that order made, the judge said.

Ms Dwyer then had to decide if she would defend the bank’s proceedings against Mr Drumm over the €8 million loans and if she would proceed with his counter-claim, the judge said.

Mr Justice Kelly adjourned both proceedings for one more week.