Application to extend businessman Sean Dunne's Irish bankruptcy opened before High Court

Application to extend businessman Sean Dunne's Irish bankruptcy opened before High Court
Sean Dunne pictured at the Four Courts yesterday after the opening day of a High Court action. Picture credit: Collins Courts

By Ann O'Loughlin

An application to extend businessman Sean Dunne's Irish bankruptcy due to alleged non-co-operation has opened before the High Court.

Lawyers acting for the Official Assignee in Bankruptcy Mr Chris Lehane, the official in charge of the administration of Mr Dunne's estate told the High Court the extension was being sought on several grounds, including his failure to provide information on assets allegedly under his control at the time he was adjudicated a bankrupt.

Opening the application, Mark Sanfey SC for Mr Lehane said Mr Dunne did not co-operate with his client between 2013 to early 2016. Mr Dunne denies the claim and opposes the application.

Counsel said the lack of co-operation included a failure by Mr Dunne to provide the Official Assignee with his address and a failure to provide Mr Lehane with information and explanations concerning assets Mr Dunne "either owned or ostensibly controlled at the time of his adjudication."

Some of these assets it has been claimed are not owned by Mr Dunne but by members of his family or held in trusts and are not part of the bankrupt's estate.

It is also claimed Mr Dunne did not attend for interview with the Official Assignee which he was required to do, until early 2016.

Mr Dunne's Irish bankruptcy was due to expire July 2016, but has been extended pending the outcome of the full hearing concerning whether any extension, which can be for a maximum five years, should be granted.

Ulster Bank petitioned the High Court in February 2013 to have Mr Dunne adjudicated bankrupt here over default on some €164m loans.

The following month, Mr Dunne filed for bankruptcy in Connecticut, US, when he claimed to have debts of $1bn and assets of $55m.

In May 2016 Mr Lehane initiated the bankruptcy extension application due to Mr Dunne's alleged non-co-operation,

Mr Dunne, represented by Barra McGrory QC, denies the allegations he has failed to co-operate and has opposed the application to have his bankruptcy extended.

Several parties involved in the case are to be cross-examined on sworn statements provided to the court.

The first witness to take the stand was US lawyer Mr Timothy Miltenberger, the lawyer acting for the "Chapter 7" trustee dealing with Mr Dunne's US bankruptcy.

Under cross-examination from Mr McGrory, Mr Miltenberger said Mr Dunne had not fully co-operated with his client.

When it was put to him by counsel that attempts were made to keep Mr Dunne in bankruptcy Mr Miltenberger said he had written to the Official Assignee's lawyers in November 2016 expressing his client's fears Mr Dunne might not co-operate with the US trustee if the businessman was discharged from his Irish bankruptcy.

The lack of co-operation was in relation to US court proceedings against other parties arising out of the bankruptcy, although it was accepted Mr Dunne himself is not a party to those proceedings.

Both Mr Lehane and Mr Dunne are due to be cross-examined during the hearing,

The application, being heard by Ms Justice Caroline Costello continues and is expected to last for several days.

More in this Section

Stop right now: Tesco removes Mel B advert in UK following Spice Girl’s complaintStop right now: Tesco removes Mel B advert in UK following Spice Girl’s complaint

Uber CEO expresses regret over comments about journalist’s murderUber CEO expresses regret over comments about journalist’s murder

UK economy ‘spluttering’ despite return to growth, say analystsUK economy ‘spluttering’ despite return to growth, say analysts

Brexit blamed as optimism among Irish businesses falls to nine-year lowBrexit blamed as optimism among Irish businesses falls to nine-year low


Lifestyle

Helen O’Callaghan on the dangers of products high in caffeine.The dangers of energy drinks full of sugar

When bride-to-be Alma Clohessy enlisted her mother Rita’s help in planning her wedding, they made the most of every precious moment together.Wedding of the Week: 'It was the best, yet most emotional day of my life'

As you may be aware, new rules around motor insurance documentation have been introduced. The rules are aimed at improving transparency for consumers but a broker is warning they may have unintended consequences and could cause some confusion among policy holders.Drive a hard bargain for better car insurance

When Peter Ryan lost 90% of his vision in his early 20s, his readjustment was emotionally painful, but maturing, says Helen O’CallaghanA new way of seeing the world: Peter Ryan talks about losing 90% of his sight in his early 20s

More From The Irish Examiner