A COURT-APPOINTED official who is overseeing the bankruptcy proceedings of former Anglo Irish Bank chairman Seán FitzPatrick has questioned a transaction which saw €15 million transferred within Anglo to act as security against a loan to Mr FitzPatrick’s family.
In a document circulated to creditors yesterday, the High Court official said the transaction was on “very beneficial terms” to Mr FitzPatrick’s wife and three children.
According to a report on RTÉ news, the official said it was necessary to investigate the transaction and consider whether it amounted to a settlement under the bankruptcy act.
The money had been used to back up a loan for an investment in a Nigerian oil field. Mr FitzPatrick made the investment with Lar Bradshaw, who was also a director of the bank.
Their €27m loan was backed with cash of €21m, which was held on deposit by Anglo. It is understood €15m belonged to Mr FitzPatrick and €6m to Mr Bradshaw.
The effect of the transaction — believed to have been carried out with the agreement of Anglo Irish and its legal advisers — was to make Mr Bradshaw liable for the entire €27m loan.
In its annual report, Anglo wrote off €21m, which it said it was owed by Mr Bradshaw.
The bank was nationalised in February last year.
Loans taken by Mr FitzPatrick’s wife and his three children with Anglo Irish were repaid at the same time.
The bank told RTÉ last night that it was unable to comment due to client confidentiality. Mr FitzPatrick also declined to comment.
It is normal procedure when someone is declared bankrupt for a court official to examine any transactions.
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