Creditors meet to discuss plans for Fitzpatrick’s debts

Creditors meet to discuss plans for Fitzpatrick’s debts

Creditors of Seán Fitzpatrick meet in Dublin today to decide whether to accept his plans for settling his debts.

The former Anglo Irish chairman owes €250m.

Failure to accept his proposals will move him a step closer to personal bankruptcy.

Anglo, has asked his creditors write down large parts of his debts.

His biggest creditor is the bank. He is believed to owe them €110m.

He is also asking the bank to stop the clock on interest payments he owes them.

He also asked his seven lender banks, including Anglo, as well as the Revenue Commissioners, to reschedule their debts for between two and 10 years, in order to give him time to overcome his financial difficulties.

Mr Fitzpatrick wants to use a rarely-used legal mechanism that would allow him to renegotiate and restructure his enormous debts.

He has sought to convince his creditors that the oil field he owns jointly with businessman Lar Bradshaw off the coast of Nigeria will, given time and investment, repay his debts.

Mr FitzPatrick is also seeking to get out of a number of personal guarantees that he provided on numerous property and other kinds of investments.

Once declared bankrupt, Mr FitzPatrick’s assets can be seized by his creditors and sold off to reduce his debts. Among the assets is Mr FitzPatrick’s home in Greystones, Co Wicklow, but also his pension built up over many years at the bank.

But the bank has given assurances that it will not pursue members of his family, even though some of the loans were taken out by Mr FitzPatrick’s children. In fact, the bank refers to the €110m loans as ‘FitzPatrick family facilities’.

Article courtesy of the Evening Echo newspaper.

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