No deal for Anglo and its ex-chief

ANGLO Irish Bank and its former chief executive David Drumm have still to reach an agreement to resolve the bank’s action against him over unpaid loans of more than €8 million, the Commercial Court heard yesterday.

In those circumstances, although discussions between the sides are continuing, the action will proceed in October as listed, Mr Justice Peter Kelly was told by John Hennessy, for Anglo. Mr Drumm presented a number of proposals to the bank in an effort to settle the action and it had rejected those and made a counter-proposal to him on July 14. To date, however, the sides have failed to reach a settlement agreement.

The full hearing of the bank’s proceedings against Mr Drumm is scheduled to open 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 he 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 tear Anglo’s action against Mr Drumm and his wife Lorraine to set aside Mr Drumm’s transfer of the family home at Abbington, Malahide, Dublin, to his wife. Anglo claims the transfer is a fraud on creditors but the couple, now living in Cape Cod, US, claim it was for “taxation reasons”.