FORMER ANGLO Irish Bank chairman Sean FitzPatrick gave personal guarantees to his former bank and Haven Mortgages, a subsidiary of EBS building society, on loans provided to his children for property and share purchases.
The guarantees relates to loans of €7 million from Anglo provided to his adult children for property investments and for their share portfolios, and a further €724,000 on an Anglo loan for an investment in a Dublin office building.
Mr FitzPatrick also personally guaranteed loans totalling almost €1.6 million to his children from Haven Mortgages to buy residential properties in Dublin. The guarantees on his children’s debts total €9.36 million.
He owes a further €48.5 million on personal guarantees provided on his own investments.
The breakdown of the loan guarantees are provided in the independent accountant’s report drafted for Mr FitzPatrick’s failed bid for bankruptcy protection.
The former Anglo chief was declared bankrupt by the High Court on Monday after Anglo, his largest creditor, blocked a settlement deal under which he would have avoided bankruptcy and repaid his creditors part of their debts from the orderly sale of assets over a period of time.
“Mr FitzPatrick has given personal guarantees to various banks on foot of monies lent to his adult children for the specific purpose of investing in various property schemes,” Co Kerry accountants O’Connor Kelliher Tracey said in their report on Mr FitzPatrick.
“The likelihood is that these properties are now in negative equity and the banks may call on Mr FitzPatrick to honour these guarantees.
“In that event it is estimated that Mr FitzPatrick’s exposure to such guarantees is in the region of €9.3 million.”
