STATE-OWNED Anglo Irish Bank has launched legal proceedings against the bank’s former chief executive David Drumm in an attempt to recover unpaid loans of €8 million and overturn the transfer of a Co Dublin property into his wife’s name.
Anglo lodged legal claims at the Four Courts in Dublin yesterday seeking to recoup the loans and to revoke the transfer of a house on an exclusive estate in Malahide last May from the couple’s joint names into the sole name of his wife, Lorraine.
The transfer of ownership of the property has meant that Anglo Irish is unable to repossess the house, which had been included as security for Mr Drumm’s loans, as part of the recovery of his debts.
Anglo has issued legal proceedings against Mr Drumm for judgment to the amount of €8 million.
It has also issued separate legal proceedings against David and Lorraine Drumm to overturn the transfer of the Malahide property.
Land Registry records show No 20 Abington was transferred from the couple’s names on May 13th, 2009, into the sole name of Lorraine Drumm as “full owner” c/o the Dublin offices of prominent solicitor Noel Smyth. The house was first registered in both names in 2003.
Mr Drumm resigned as chief executive of Anglo last December after it emerged that the bank had concealed loans of up to €122 million to its former chairman Seán FitzPatrick over eight years.
The bank could apply to the Commercial Court this week to bring a motion at short notice to transfer the case into the court’s list next Monday at which further details of the lawsuits would be outlined.
It is understood that some of Mr Drumm’s loans were secured on Anglo shares which became worthless when the bank was taken into State ownership at the start of this year after a spate of controversies threatened its collapse.
The Abington property is one of a number of Mr Drumm’s personal assets that the bank can seek to repossess to recover the loans. The legal action follows comments on Monday by Minister for Finance Brian Lenihan that current and former Anglo executives not repaying loans would be “sued in the courts”.
Plans to pursue legal actions against former directors were discussed with the Minister at a meeting with Anglo’s chief executive, Mike Aynsley, last Monday. The Minister must approve any legal action against current or former directors under an agreement between the bank and the Government.
Mr Drumm took the property in Abington, a gated estate, off the market last month after failing to secure a buyer for the 5,200sq ft house, despite reducing the asking price from €2.79 million to €2.3 million in September.
The Irish Timesreported last month that Mr Drumm had flown into Dublin from the US, where he is currently living, to meet Mr Aynsley to discuss his loans.