John Rowan refused orders requiring the special liquidators of Irish Bank Resolution Corporation to provide security for costs of their action
The retired chief executive of Anglo Irish Bank’s UK operation has been refused orders requiring the special liquidators of Irish Bank Resolution Corporation to provide security for costs of their action aimed at compelling him repay most of his €6 million retirement package.
John Rowan, who left Anglo in late 2005, was a retiree “long out” before the matters recently revealed via taped recordings of conversations between various executives of the bank leading up to, and beyond, the State’s September 2008 bank guarantee, his counsel Mark Connaughton SC said.
Mr Connaughton said he wanted security for costs orders against State-owned IBRC, Anglo’s successor in title, because he was concerned about various aspects of an offer by IBRC special liquidator Kieran Wallace to provide €50m cash for legal costs. IBRC was hopelessly insolvent and was claiming this €50m was “absolutely ring-fenced” when it was not, he said.
His concerns included that a floating charge over IBRC’s assets in favour of the Central Bank which had been transferred to the National Assets Management Agency had crystallised on IBRC’s special liquidation last March but was now said to have been “decrystallised” by Nama. Such a “decrystallisation” was “a most unusual event”.
Other concerns were the joint special liquidators of IBRC are subject to the control of the Minister for Finance, not the courts, counsel said.
The “incredible” powers held by the Minister over the liquidators meant the situation concerning the €50m fund could change at any time should the Minister decide.
*This article was amended on Friday, July 19th to correct an error.