Developer’s wife to become creditor

The wife of developer Seán Dunne is to be added to the list of creditors in his US bankruptcy case in papers due to be filed in Connecticut on Friday.

Gayle Killilea Dunne and her husband are subjects of Nama proceedings in the state where they currently resides, on foot of a €185m Irish High Court judgement secured against him last year.

Nama claims Ms Killilea Dunne made several deals with funds fraudulently transferred by Mr Dunne after he became insolvent.

Lawyers for the couple were in a US Federal Bankruptcy Court in Bridgeport yesterday to lodge a new appeal seeking to reimpose a stay to stop Ulster Bank from proceeding with its petition to have him declared bankrupt in Ireland as well as in the US.

The stay was lifted on Jun 4 by Judge Alan Shiff following submissions by lawyers for Ulster Bank and Nama, as well as lawyers for the US creditors’ trustee, Rich Coan.

Ms Killilea Dunne’s lawyer, Eric A Henzy, told Judge Shiff his client would become a creditor of her husband for reasons that were sensitive in nature. “Gayle is a creditor in this case,” he said. “My client has a claim. Mrs Dunne is a party of interest. It’s a sensitive area.”

All parties will return to court next Wednesday.