Killilea fails in US bid to block Dunnes’s Irish bankruptcy official

A Connecticut court has rejected an attempt by Gayle Killilea to prevent her husband Seán Dunne’s Irish bankruptcy assignee from getting a ruling from the court to help him chase assets transferred by the bust developer to his wife.

Mr Dunne has also been declared bankrupt in the US and his court-appointed trustee there sought the ruling that would help him and Chris Lehane, who is overseeing his Irish bankruptcy, to pursue the assets.

The bankruptcy officials had asked the court to terminate a stay in the US courts on the pursuit of the US and South African assets.

In the latest twist in a myriad of such legal actions surrounding Mr Dunne, Ms Killilea had objected to the application on the basis that it would be “completely unfair” to her because it could affect litigation over the assets in other countries.

Ms Killilea’s lawyer had argued Mr Lehane had “in complete disregard” for the authority of US bankruptcy court begun “fraudulent transfer litigation” in Ireland with similar “satellite” litigation against a hotel beneficially owned by her in South Africa. The bankruptcy officials contended she had no standing to seek the ending of the stay by the US court.

The Connecticut court this week rejected Ms Killilea’s application. A judge said the court should “promote the efficient management of this case and hopefully provide assistance to the [Irish] High Court”, where Mr Lehane has taken action over the disputed assets.