The court-appointed officer overseeing the bankruptcy of former Anglo Irish Bank chief executive David Drumm has received approval from a Boston court to sell his Cape Cod home for $3.88 million (€2.8 million).
The house in the seaside town of Chatham was purchased by Mr Drumm for $4.6 million in March 2008 and has been sold to Three Sisters Trust or its designee, according to a court filing.
The purchase of the five-bedroom house spanning 4,600 sq ft does not include certain furnishings and fittings which are being sold for an additional $150,000, bringing the total purchase price to $4.032 million.
The officer appointed by the court, lawyer Kathleen Dwyer, had previoulsy agreed to pay Mr Drumm’s wife Lorraine $84,000 from the sale of the furnishings and fittings pending the resolution of a dispute.
Ms Dwyer disputes Mrs Drumm’s claim that she owns more than 50 per cent of the furnishings and fittings in the house.
Mr Drumm filed for bankruptcy in Massachusetts in October 2010 after failing to reach a settlement agreement with Anglo, which he owes about €8.5 million. Most of the debt arose from drawing loans to buy shares in the banks.
He listed debts of $14.2 million and assets of $13.9 million when he declared bankruptcy.
Ms Dwyer and Anglo have filed fresh lawsuits against Mr Drumm in an attempt to stop him from being discharged as a bankrupt on the basis that he failed to disclose certain financial transactions and property transfers to his wife.
He has sought extensions to file a defence to their complaints as he is briefing a new lawyer in the case ahead of a trial in the proceedings.
Mr Drumm quit as chief executive of Anglo in December 2008.