THE former head of Anglo Irish Bank, Sean Fitzpatrick, is expected to be officially declared bankrupt on Monday after his former bank blocked a proposed settlement deal with his creditors.
Mr Fitzpatrick has liabilities of almost €150 million, including bank loans of more than €80m, and had argued his creditors would do best under his proposed deal.
Mr Fitzpatrick also has substantial assets, but the value of many of those has been affected by the property crash.
Mr Fitzpatrick had put together a scheme which was placed before a meeting of creditors this week but, after Anglo, his largest creditor, opposed the scheme, it could not go ahead.
At the creditors’ meeting, he accepted full responsibility for “my own ruin” and expressed deep regret to all creditors.
He also said he had, throughout his business dealings and during his time in Anglo, acted at all times in good faith and always believed he was acting prudently and properly.
Just before 1pm at the High Court yesterday, Mark Sanfey SC, for Mr Fitzpatrick, told Mr Justice Brian McGovern it was in circumstances where his proposed settlement could not proceed that Mr Fitzpatrick wanted to “pull the plug” on the process and to petition the court on Monday to be adjudicated bankrupt.
Because Anglo is his largest creditor, Mr Fitzpatrick had taken the view there was no point with proceeding with a private court sitting on Monday as he would not achieve the necessary majority to go ahead with his settlement scheme, counsel said.
That was the reason for coming to court, to inform it of developments in the same way an examiner would, he added.
The judge queried, if the court protection order which had restrained creditors moving against Mr Fitzpatrick as he sought to put a scheme together was lifted, there was any danger Mr Fitzpatrtick would be able to deal with his assets as he wished.
Mr Sanfey said he was instructed to provide an undertaking to the court that Mr Fitzpatrick would not deal with his assets. On the basis of that undertaking, the judge agreed to lift the protection order.
Mr Fitzpatrick’s bankruptcy petition will now be listed in the High Court bankruptcy list for Monday and all of his creditors are to be notified of the decision.
Anglo would be able to outline its views then, Mr Sanfey said.
Mr Fitzpatrick had offered his family home and half of his pension as part of the proposed settlement deal with his creditors.
It also provided they would be repaid part of their debts over time.
© Irish Examiner Ltd. All rights reserved