Date finally set for David Drumm’s bankruptcy trial

David Drumm’s long and often delayed bankruptcy trial is pencilled in to take place over five days in May.

It followed a motion by the former Anglo Irish chief for a short delay, to allow his lawyer prepare for his daughter’s Bat Mitzvah celebration and for the trial.

At the US bankruptcy court in Boston yesterday, Judge Frank Bailey agreed to delay the trial — but for just two days.

But Judge Bailey ordered the trial must start on May 21, three years and seven months after Drumm first filed for bankruptcy after failing to come to an agreement with his former employers over millions in unpaid loans from the bank.

The trial is happening because the Irish Bank Resolution Corporation and the trustee overseeing the bankruptcy objected to the discharge of Mr Drumm’s debts.

They both claimed he “fraudulently” tried to hide transfers of cash and assets and asked for a trial to decide whether he be allowed walk free and clear of his debts, possibly paying pennies on the dollar, or be forced to be burdened until all have been paid off.

A loss in court has other serious implications for Mr Drumm, with the possibility of criminal charges if he is found to have committed perjury during the bankruptcy process.

The judge can refer the matter to federal prosecutors for investigation. Under US law, a conviction for perjury carries a maximum five years in prison.

Mr Drumm, who stepped down as chief executive of Anglo Irish in December 2008, filed for bankruptcy in the US in October 2010, listing debts of $14.2m (€10.3m), the bulk of which is owed to the IBRC, and assets of $13.9m, including a multimillion dollar pension.

After a series of hearings, the IBRC and the trustee Kathleen Dwyer filed in September 2011 their objections to the discharge and asked for a trial.

The first trial date was set for January 2012, followed by five more since then.

In a motion filed last month, Drumm asked for a short postponement, from May 19 to any day after May 22, as his lawyer David Mack’s daughter has her Bat Mitzvah on May 17.

Mr Mack, in an affidavit, said he was not at the October hearing, when the date was set, and only realised some time after it clashed with the “once in a lifetime” religious celebration.