Not enough creditors for bank trustee to disburse assets

THERE WAS nothing about Seán FitzPatrick yesterday indicating he was a broken man or one who was too deflated to try to save for himself whatever he could.

The emergence of some very small creditors in recent days ensured that while Anglo Irish Bank is owed 92 per cent of FitzPatrick’s overall debt of €146 million, it did not have enough creditors to support its proposal that the bank’s trustee be appointed to disburse his assets.

The appointment would have needed the support of three-fifths of all creditors in value and number. Recently solicitor William O’Grady, who is acting for FitzPatrick in his bankruptcy proceedings, was appointed a proxy for a number of small creditors.

As well as FitzPatrick’s wife, Catriona, who is owed €53,569, five other creditors appointed O’Grady. They were: Smith O’Brien Hegarty, solicitors (owed professional fees of €635); Paul Connolly Co (owed rent of €1,000); James P Power (owed professional fees of €500); Cullen Tyrell O’Beirne solicitors (professional fees of €2,436); and James McMahon Residential Letting Ltd, (professional fees €703). These debts have been accepted by the official assignee, Chris Lehane.

AIB and Friends First already indicated they would not be voting for the Anglo plan, while Cove Capital, associated with former Anglo director Lar Bradshaw, and the Revenue, were to abstain.

Some others owed money by FitzPatrick might have backed the Anglo proposal, but the arrival of the new creditors put paid to any hopes that might have existed.

The court hearing appointing Lehane was over within minutes and FitzPatrick went with his legal advisers to the barristers’ restaurant for a chat and tea.

He seemed to be in good if not ebullient form, full of conversation and gesticulation. When he emerged afterwards he had to suffer being followed by a posse of journalists and photographers. He had gotten into the Four Courts complex without being photographed, and the cameramen were determined he would not leave without being recorded.

Approached by The Irish Times, he said he had no comment to make. When it was put to him that surely he would have to speak at some stage, he said he would like to speak, but felt he could not. “It’s very frustrating.”

He told the photographers he was going out through the narrow Bridewell Gate, to the rear of the complex. Walking towards the gate and the awaiting scrum of cameramen, he began to laugh. In public relations terms it was probably not advisable, but it was no doubt prompted by nerves.

A green Jaguar with a 2004 reg was waiting for him on Church Street, and he was driven away without having made any further comment.

His statement of affairs for July of this year shows he had €500 in cash. This compares with the €5,500 he declared in June. Another small change between the two dates involved a 1992 BMW of no value, which did not appear in the June statement but did in the July one.

No mention was made in court about a change in FitzPatrick’s affairs that is being examined by Lehane. In February 2009, after Anglo was nationalised, the bank negotiated a restructuring of its dealings with its former chairman.

It had issued a €32 million loan some time ago which FitzPatrick and Bradshaw had put towards an investment in a Nigerian oil well. A deposit of €15 million, which was providing security against the oil loan, was transferred to secure FitzPatrick family loans. In return the bank apparently got a stronger hold on the Nigerian oil asset. (It already had joint and several guarantees from the two former Anglo directors.)

In FitzPatrick’s statement of affairs the Nigerian investment is given a value of €15 million, a slight increase on the June figure.

Lehane has the power to seek to undo the February 2009 arrangement if he believes it constituted a “settlement” by FitzPatrick with his family.

Some of the assets listed for FitzPatrick are half shares in properties he owns with his wife. She, somehow, has half his Anglo retirement fund (the total value is €6.8 million). The statement shows the couple have very substantial investment portfolios, worth €3 million or more. They are listed as backing some of FitzPatrick’s debts.

Whether the entirety of the funds, or just his half of the funds, is being used as security and is listed is not clear.