Bid to set aside Dunne’s asset transfer

The official in charge of Sean Dunne’s bankruptcy has launched High Court proceedings aimed at setting aside the bankrupt businessman’s transfer of an interest in a €17m-€18m South African hotel to his wife Gayle.

The court heard yesterday that Chris Lehane, the official assignee administering Mr Dunne’s bankruptcy, wants to set aside 2005 and 2008 transactions between the Dunnes in respect of the Lagoon Beach Hotel in Cape Town.

Mr Lehane told the court he had significant concerns about the agreements, which, he believed, had been conducted when Mr Dunne was unable to pay his debts as they fell due. In particular, the 2008 transfer had been done at a time when he had significantliabilities in Ireland.

Mr Lehane said he believed the transactions had been entered into with the intention of hindering, defeating, or delaying Mr Dunne’s creditors.

In proceedings against Gayle Dunne, Mr Lehane said he wanted the transfers declared null and void by the Irish High Court so the assets could be realised for the benefit of Mr Dunne’s creditors in Ireland. He estimated the hotel is worth between €17m and €18m subject to a secured creditors’ interest of €6m.

Mr Lehane said there was a complex corporate structure involving companies in Ireland, the Isle of Man, Mauritius, and South Africa in regard to the ownership of the hotel. However, it did not appear to be disputed as Mrs Dunne was the ultimate owner of the hotel.

The court heard that Mrs Dunne’s position in respect of the transfers was that her husband was solvent at the time of the transfers and perfectly entitled to enter into the agreements.

The matter came before the High Court yesterday when Mr Justice Anthony Barr gave lawyers acting for Mr Lehane permission to serve the proceedings on Mrs Dunne outside the jurisdiction. The orders were sought because the official assignee said he does not know where she currently resides.

The ruling means the proceedings concerning the transfer of the hotel can be served on lawyers in the US and Ireland, who are representing Mrs Dunne in other proceedings. The orders were granted on an ex parte basis.

The court heard Mr Lehane had brought proceedings before the High Court in South Africa inrespect of the hotel.

A South African court, which had recognised Mr Dunne’s bankruptcy, granted Mr Lehane an asset preservation order. That prevented the dissipation of the hotel, or shares in the company that owns the hotel, until the application seeking to set aside the transfer has been determined by the Irish courts.

Mr Lehane sought the order because he feared the asset might be dissipated before the Irish courts had ruled on the transfer agreements he seeks to challenge.

The court heard Mr Lehane did not make any attempt to personally serve Mrs Dunne and there was no suggestion she was evading personal service. He said the primary reason for making the application for service was because he did not know where she lives.

A sworn statement by Mrs Dunne to the South African courts had not contained an address for her. The statement said she was an adult female property developer and hotelier, currently residing within the US and UK.