Dunne gives up battle to walk away from debts in US

Seán Dunne gave up his battle to walk away from his US debts at a bankruptcy court in Connecticut yesterday.

The property developer had been waging a 21-month legal bid to achieve a fresh financial start, but ultimately decided to abandon the process. His lawyer told Judge Alan Shiff that Mr Dunne was electing to “waive his discharge” from bankruptcy.

It now leaves the Co Carlow-native susceptible to his creditors who can pursue his assets based on both past and future earnings.

The case was due to go to trial in January, but now Mr Dunne will find himself in a worse-off position than before, unable to start anew without debt and losing control of certain assets.

Lawyers for National Asset Loan Management — which is owed €185m — were in court for this surprise development, which represents a victory for them and their fellow creditors, including Ulster Bank.

The bankruptcy bid was first filed in March 2013, leading to a handful of creditor meetings that were often tense.

Mr Dunne then, unexpectedly, sought to withdraw his application in August of this year.

He had been accused by Ulster Bank, in a recent legal filing, of frustrating the efforts of his creditors, and that the investigation into his finances would be “substantially hampered” if the court granted his motion to dismiss.

Nama consistently objected to the discharge bid, claiming the developer’s motion was filed “in bad faith” and that a dismissal would prejudice his creditors.

Mr Dunne had sought to withdraw his US bankruptcy case on the basis that he had also been adjudicated a bankrupt in Ireland and that creditors would be adequately protected in the Irish bankruptcy alone.

But yesterday, in a hearing that lasted less than five minutes, James Berman, representing Mr Dunne, requested to make a brief opening statement, stating his client was waiving the attempt to discharge from bankruptcy.

The former so-called ‘Baron of Ballsbridge’ has lived in the US since 2010 and, within just overtwo-and-a-half years, he entered the bankruptcy process in Connecticut, where he was a resident along with his family.

Nama claims he fraudulently transferred tens of millions of euro to his wife Gayle Killilea and that she is a front for his property deals in the US with money that should go to his creditors.

A spokesman from Nama declined to comment on yesterday’s outcome.