A DECISION in proceedings taken by a US bankruptcy trustee involving Anglo Irish Bank chief executive David Drumm was adjourned yesterday to allow the judge time to consider matters.
Ms Justice Elizabeth Dunne reserved her decision on an application on behalf of Massachusetts trustee Kathleen Dwyer for an “order in aid” from the High Court to assist her in administering Mr Drumm’s bankruptcy. The judge said she needed time to consider the case.
Mr Drumm filed for bankruptcy in Massachusetts on October 14th. Anglo Irish Bank had also issued proceedings for Mr Drumm’s bankruptcy in Ireland.
Under US law, all of Mr Drumm’s assets worldwide should be vested in Ms Dwyer and a worldwide stay has effectively been put on all legal proceedings against Mr Drumm, including the Anglo Irish action.
Bernard Dunleavy SC, on behalf of Ms Dwyer, told the court yesterday that an “order in aid” would ensure all creditors could be dealt with on an equal footing in relation to Mr Drumm’s assets.
Mr Dunleavy said legal advice supplied from the US indicated a “broad equivalence” between bankruptcy proceedings in Ireland and the US and it was undesirable to have multiples of bankruptcy proceedings.
He also said the advice indicated Mr Drumm had been resident in the US for a sufficient amount of time to “submit” to bankruptcy proceedings in that jurisdiction.
And, quoting from case law, he said there was an inherent jurisdiction in Irish courts to provide for an order in aid.
Counsel for Anglo Irish Bank, John Hennessy SC, said the bank would be attending a meeting in the US of Mr Drumm’s creditors today.
The bank would be seeking to have a new trustee appointed in place of Ms Dwyer, he said, though he did not explain why.
He told Ms Justice Dunne he was not in court to object to the application from Ms Dwyer, but was only there to assist the court.
He went on to complain that one of the reliefs sought by Ms Dwyer, that the family home in Malahide be vested in her, could pose a difficulty as it had not been formally retransferred back into the joint names of Mr Drumm and his wife Lorraine. It was pointed out that Mrs Drumm had agreed to the transfer.
Mr Dunleavy said he was seeking a “seamless transfer” of all of Mr Drumm’s property and the family home should not “fall between two stools”, but agreed to delete the specific reference to the property if necessary.
Ms Justice Dunne said she was aware the Anglo Irish action was before the High Court again today, but needed to consider her decision before ruling on the matter. The case was adjourned.
