FORMER ANGLO Irish Bank chairman Seán FitzPatrick has failed in a bid to have a case related to his personal debts held in private. Mr Justice Brian McGovern said he was uneasy about such matters being heard in private.
The former banker had applied to the High Court to appoint himself an “arranging debtor” under the Bankruptcy Act 1988.
Under the Act, an individual with extensive debts may make such an application. He must set out the reason for his inability to pay his debts and request that he and his property are protected from any legal action against him.
The court may then grant an order protecting him from his debtors and allowing him time to devise a scheme of arrangement where creditors would be repaid some or all of their debts on an orderly basis over an extended period.
The arrangement must be approved by three-fifths of creditors in number and value of debt. The protective measure had been rarely used, but in the last few months it has become more popular.
Many of the cases have been heard in camera in the Bankruptcy Court, which sits on Monday mornings.
Mark Sanfey SC, for Mr FitzPatrick, asked Mr Justice McGovern yesterday if the case could be heard in camera. The judge said he was aware it had become practice recently that such cases where held in camera, but there was no statutory basis for it.
“I am uneasy about these matters being held in private,” he said.
Mr Sanfey pointed out that under section 134 of the Bankruptcy Act the court may direct that the case be heard in private.
“Well I’m not going to,” the judge responded.
The initial order to protect Mr FitzPatrick (61) under the Act was made on March 15th. It set out a timeframe in which Mr FitzPatrick’s creditors could submit claims and a meeting of creditors could be held to consider a scheme of arrangement.
However, the court was told, there may be some delay as there could be disputes around some of the debts.
Mr Sanfey said that technically the order would be breached if the meeting of creditors was held later than the date specified and he asked the judge to amend his original order to allow for a change of date.
Mr Justice McGovern agreed to amend the order. The case was adjourned until June.
It is still open to Mr FitzPatrick to apply to the court have further hearings held in private.
