FORMER ANGLO Irish Bank chairman Seán FitzPatrick had access to loans of up to €100 million from other financial institutions on top of borrowings of €110 million he had drawn from Anglo, his creditors were told.
Mr FitzPatrick was declared bankrupt by the High Court yesterday after Anglo, his largest creditor, blocked a settlement under which he would have repaid part of his debts over time from the orderly sale of his assets and investments.
His assets, including various properties and investments, will now pass to the control of the official assignee, a court officer.
Lawyers for the former Anglo chief executive, who owes the bank €110 million, said that he was “bowing to the inevitable” by asking the court to declare him a bankrupt.
It could take upwards of six or seven years for Mr FitzPatrick to be discharged as a bankrupt, his lawyer, Dublin solicitor William O’Grady, told creditors at a private meeting last week.
Mr FitzPatrick has total liabilities of €147.9 million but assets currently valued at €51 million, leaving a deficit of €96.7 million.
His debts include some €58 million arising as a contingent liabilities under personal guarantees he provided in respect of his investments, including €9.3 million provided for his adult children.
Under his proposed settlement deal, Mr FitzPatrick had offered to sell his half-share in his family home in Greystones, Co Wicklow, to his wife and distribute the proceeds towards his creditors.
He also offered half his pension worth €3.4 million, the other half of which went to his wife, and his car, a 2008 Volkswagen Passat, which he has valued at €15,000.
Mr FitzPatrick’s advisers told creditors last week in a bid to secure a settlement that he had access to up to €100 million in loans from institutions other than Anglo.
These loans were secured on bank shares, including five million shares in Anglo which were worth €50 million in June 2008.
He also held Anglo bonds and had substantial shareholdings in AIB, Bank of Ireland and other quoted financial institutions, which fell sharply in the crisis.
He also held a large property portfolio, the value of which also declined dramatically in the crash.
Mr FitzPatrick’s advisers have valued his Anglo shares at zero.
His assets include €1.6 million in various bank accounts at Anglo, Bank of Ireland and its subsidiary, ICS Building Society, and Ulster Bank.
He owns half-shares in properties in apartments in Smithfield and Killiney, Dublin; Greystones, Co Wicklow; and Marbella, Spain.
His investments include properties in the UK, France, Hungary, Poland, South Africa and the US.
He has share portfolios at Dublin stockbroking firms Davy, Bloxham, Goodbody and NCB.
Mr FitzPatrick is in dispute with the Revenue Commissioners over some €2.8 million in relation to capital gains and income taxes.