Anglo rejects Drumm settlement offer

ANGLO Irish Bank has rejected proposals from former CEO David Drumm aimed at settling its action against him over unpaid loans of more than €8 million, the Commercial Court heard yesterday.

The bank declined Mr Drumm’s offer but made a counter-proposal to him on July 14, Mr Justice Peter Kelly was told by Barry O’Donnell, for Anglo.

Unless something came from that counter-proposal, the action against Mr Drumm should proceed in October, he added.

Declan McGrath, for Mr Drumm, indicated his side had sought clarification related to matters in the counter-proposal.

After Mr O’Donnell said the decision-making process in relation to the proposals advanced involved a considerable number of parties, the judge directed the court should be informed on July 30 of Mr Drumm’s response to the counter-proposal and adjourned the case until then. If the counter-proposal is not accepted, the full hearing of the bank’s proceedings against Mr Drumm will begin on October 26.

Mr Drumm, who resigned in December 2008 as CEO of Anglo, claims the bank’s demand for immediate repayment of the January 2008 loans breaches loan agreements and has counter-claimed his employment was not validly terminated in early 2009.

He claims Anglo owes him €2,620,695 in salary, pension and deferred bonus payments and also wants damages, including damages for “mental distress”.

After the loans action concludes, the court is due to hear Anglo’s action against Mr Drumm and his wife, Lorraine, to set aside Mr Drumm’s transfer of the family home at Abbington, Malahide, Co Dublin, to his wife. Anglo claims the transfer is a fraud on creditors but the couple, now living in Cape Cod in the US, claim it was for “taxation reasons”.