Sean Dunne asks High Court to overturn Irish bankruptcy

Developer Sean Dunne has urged the High Court to overturn his Irish bankruptcy on grounds including his claim he has effectively not lived here since 2007.

Since 2007, he lived in Paris, Geneva and London before eventually moving to the United States where he has lived since August 2010, he claims.

Mr Dunne has no assets here that could be administered by the Irish Official Assignee who administers the estates of bankrupts, Mr Justice Brian McGovern was told.

Lawyers for Mr Dunne also argued today there was no entitlement to adjudicate him bankrupt here late last July because he had been made bankrupt in the US some months earlier, in late March 2013.

The Irish bankruptcy proceedings were not properly served on Mr Dunne in the US in accordance with court rules and Mr Dunne denies claims he was aware proceedings had been initiated in Ireland last February, prior to the US adjudication, to have him adjudicated bankrupt here, Bill Shipsey SC said.

Packages related to bankruptcy proceedings were served on US lawyers for Mr Dunne but he was not available to meet the lawyers until July 25th last, just four days before the petition hearing on July 29th, counsel said.

Among various claims related to service were that Mr Dunne had not received seven clear days notice of the petition as required, the court was told.

There was also no legal basis for the Irish Official Assignee in Bankruptcy to enter into any protocol agreement with the US bankruptcy trustee which might involve some of his estate being dealt with in Ireland and some in the US.

Mr Shipsey also described as ill-founded suggestions that Mr Dunne could not now move to set aside the Irish bankruptcy adjudication.

Counsel was opening the hearing of Mr Dunne’s application to set aside the order adjudicating him bankrupt here.

Mr Dunne was adjudicated bankrupt by Miss Justice Elizabeth Dunne after Ulster Bank, supported by the National Asset Management Agency (Nama), petitioned for bankruptcy due to default on repayment of €161 million loans issued for properties in Dublin.

The businessman, now living in Connecticut, wants to have the bankruptcy set aside but Ulster Bank is opposing that.

The declaration by Miss Justice Dunne was part of parallel applications to have Mr Dunne adjudicated bankrupt in both the US and Ireland. In filing for bankruptcy in the US, Mr Dunne claimed to have debts of $1 billion and assets of only $55 million.

Following an application by Ulster Bank, the US court appointed trustee managing Mr Dunne’s US bankruptcy ruled parallel proceedings would benefit Mr Dunne’s creditors as the vast majority of his properties are in Ireland.

The hearing continues.