FORMER ANGLO Irish Bank chairman Sean FitzPatrick offered his family home and half of his pension in the proposed settlement deal with his creditors under which they would be repaid part of their debts over time.
Mr FitzPatrick and his advisers outlined the terms of a proposed scheme of arrangement settlement which would have granted him the status of “arranging debtor” under bankruptcy law and avoided outright bankruptcy.
Under the deal, Mr FitzPatrick proposed putting up his home in Greystones, Co Wicklow, for the benefit of creditors and half his pension, the other half of which is for the benefit of his wife.
The proposal is destined to fail as his former employer, the now nationalised Anglo Irish Bank, has blocked it. Mr FitzPatrick faces the prospect of being declared bankrupt over the coming days.
Mr FitzPatrick’s advisers told creditors that they would receive more from the sale of his assets under the scheme of arrangement than under outright bankruptcy.
They said that his bankruptcy would be a protracted affair and would incur substantial costs.
A private High Court hearing is scheduled for Monday at which creditors are due to vote on the proposal. However, the vote may not proceed as Anglo, which has about 70 per cent of his overall debts, has the power to block it.
Under bankruptcy law, Mr FitzPatrick must secure the approval of 60 per cent of his creditors in number and value of debt for the settlement deal to be accepted.
Anglo is owed €110 million by Mr FitzPatrick out of a total indebtedness of about €150 million. He has a deficit of about €80 million between his assets and liabilities.
It is understood the official assignee, the court officer entrusted with the affairs of a bankrupt, has questioned Anglo’s security over one of Mr FitzPatrick’s investments, the Ekeh oil field off Nigeria, his share of which he has valued at $50 million (€39 million).
