Drumm applies for bankruptcy in US courts

Anglo Irish Bank's former chief executive David Drumm has applied for voluntary bankruptcy in the US courts.

The move comes ahead of a court case being taken by his former employers that is due to begin in the Irish courts next week.

At 3pm Irish time, David Drumm made a petition for voluntary bankruptcy in Massachusetts in the US.

His lawyer told the High Court here that it was the last thing Anglo's former CEO had wanted to see happen, saying he had bent over backwards to accommodate the Irish court proceedings against him.

He said Mr Drumm had made an offer of all of his assets except his clothing and jewellery.

Anglo Irish bank's attempts to recoup €8.3m in unpaid loans from him are due to begin in the Commercial Court next week.

The bank's lawyer described today's turn of events as "extraordinary".