FORMER ANGLO Irish Bank chairman Seán FitzPatrick will ask the High Court on Monday to declare him bankrupt after the bank blocked a proposed settlement deal with his creditors.

Mr FitzPatrick has liabilities of almost €150 million, including €110 million owing to Anglo Irish Bank, and a deficit of €80 million.

He had argued that creditors would do best under the proposed deal. He has substantial assets but the value of many of them has fallen in the property crash.

Mr FitzPatrick had put together a scheme which was placed before a meeting of creditors on Wednesday but, after Anglo, his largest creditor, opposed the scheme, it could not go ahead.

At the creditors’ meeting, Mr FitzPatrick said he accepted full responsibility for “my own ruin” and expressed deep regret to all creditors. He said he had, throughout his business dealings and during his time in Anglo, acted at all times in good faith and always believed he was acting prudently and properly.

Just before 1pm at the High Court yesterday, Mark Sanfey SC, for Mr FitzPatrick, told Mr Justice Brian McGovern that it was in circumstances where his proposed settlement could not proceed that Mr FitzPatrick wanted to “pull the plug” on the process and to petition the court on Monday to be adjudicated bankrupt.

Because Anglo is his largest creditor, Mr FitzPatrick believed there was no point proceeding with a private court sitting on Monday as he would not achieve the necessary majority to go ahead with his settlement scheme, counsel said. That was the reason for coming to court, to inform it of developments in the same way an examiner would, he said.

The settlement deal required 60 per cent of the creditors – in number and value of debt – supporting the deal and Anglo represented well over 40 per cent required to block the proposal.

The judge queried if the court protection order which had restrained creditors from moving against Mr FitzPatrick as he sought to put a scheme together was lifted would there be a danger Mr FitzPatrick could then deal with his assets as he wished.

Mr Sanfey said he was instructed to provide an undertaking that Mr FitzPatrick would not deal with his assets. On the basis of the undertaking, the judge agreed to lift the protection order.

Mr FitzPatrick’s bankruptcy petition will be listed in the court’s bankruptcy list for Monday and all creditors will be notified of the decision. Anglo would be able to outline its views then, Mr Sanfey said.

Mr FitzPatrick had offered his family home and half of his pension as part of the proposed settlement deal with his creditors. It also provided they would be repaid part of their debts over time.

It is understood his home in Greystones, Co Wicklow, was valued at about €800,000 and carried a mortgage of about €60,000.

The court was told that Mr FitzPatrick had met Anglo prior to his meeting with the other creditors and that he was told the State-owned bank would not be supporting his settlement proposal.

Separate to yesterday’s hearing, it is understood that one of the creditors may assess whether they have recourse to take legal action against Anglo over its decision to block the settlement, which may leave them in a worse-off position.

Mr FitzPatrick’s advisers told creditors that they would receive more under the settlement deal as assets could be sold to repay some of their debts on an orderly basis.

They warned that his bankruptcy would be protracted and lead to heavy costs being incurred.

A number of creditors, including Bank of Scotland (Ireland) and Friends First, spoke in support of Mr FitzPatrick’s proposed deal at the creditors’ meeting on Wednesday. Several others also supported the deal.

Creditors were told that Mr FitzPatrick being declared bankrupt would increase his liability to the Revenue Commissioners due to a higher stamp duty charge running to about €4.8 million, compared with about €1.5 million under the proposed settlement agreement.

One of Mr FitzPatrick’s largest assets is his investment in the Ekeh offshore oil field in Nigeria, his share of which he has valued at $50 million. There is a dispute involving Anglo over who has first security over the oilfield.

Anglo agreed to limit its recourse to pursue Mr FitzPatrick’s family for outstanding loans in February 2009 – just weeks after the bank’s nationalisation – after he agreed to give the bank more security over the field.