Surprise application to halt transfer the latest twist in ever more complex drama

ANALYSIS:Court is told Drumm bankruptcy bid designed to cause 'maximum disruption' as Anglo does U-turn on property, writes SIMON CARSWELL

THE LONG-RUNNING duel between Anglo Irish Bank and its former chief executive David Drumm took an unusual turn yesterday as the bank secured an injunction stopping his wife transferring a Dublin property back into their joint names.

It was an unusual application by Anglo given that the bank has sued Drumm and his wife, Lorraine, seeking to overturn the May 2009 transfer of the house at Abington in Malahide, Co Dublin from their joint names into her sole name.

Mike Aynsley, Anglo’s chief executive, said that, on Monday evening, the bank received a letter from Mrs Drumm’s lawyers saying that they had been instructed to settle the bank’s case by transferring the property into their names.

So why is Anglo now objecting? Mr Aynsley told the court that the bank had received legal advice that the transfer at this point would put the property “beyond reach” of Anglo and also of the official trustee appointed by a Boston court last week following Mr Drumm’s surprise filing for voluntary bankruptcy.

The bank was advised that because the property was not on Mr Drumm’s list of assets when he filed for bankruptcy, it could be withheld from his creditors.

Lawyers for Mrs Drumm have denied that claim, or that the transfer of the house into her name was a fraud on creditors.

Mrs Drumm is claiming that she wanted the property to be transferred back into their joint names so that it could be sold and that half the sale proceeds (covering her husband’s share) could be used to help repay his creditors.

Mr Drumm’s bankruptcy filing has complicated the bank’s court actions, including next week’s trial of the action against him for the recovery of €8.5 million in loans.

Anglo’s lawyer told the court Mr Drumm had completed a financial literacy course as a condition of filing for bankruptcy and that this showed his bankruptcy was timed to cause “maximum disruption” to the bank’s legal action.

Mr Justice Peter Kelly, who was due to hear Anglo’s action next Tuesday, has directed that the US trustee in bankruptcy – who has control over his assets – be asked whether she intends to appear in the Irish court proceedings.

Anglo’s legal proceedings are growing ever more complex and are now being played out both in Ireland and the US.