The official managing the bankruptcy of Seán Dunne has asked a US court for permission to borrow $160,000 (€118,000) from the National Asset Management Agency and Ulster Bank, the property developer's two biggest creditors, to pay for the cost of administering the bankruptcy.

Mr Dunne's bankruptcy trustee, lawyer Richard Coan, has asked the Connecticut court to approve a loan of $40,000 per quarter for four consecutive quarters borrowed from the two Irish creditors to be used for the payment of the administrative expenses incurred in the Co Carlow developer's bankruptcy.

No interest will be incurred on the proposed loan and no security will be granted to the lenders over the assets of the estate under the borrowing terms. The debt will be repaid when the estate receives more than $250,000 from the sale of assets or the recovery of funds, subject to an order of the court.

Timothy Miltenberger, a lawyer in Mr Coan's New Haven, Connecticut-based law firm, said the trustee requires the financing to perform his duties and to maximise the return for unsecured creditors.