Solicitor and property investor Brian O'Donnell and his wife Dr Mary Patricia filed for bankruptcy in the UK this morning, the Commercial Court heard today, and were ordered to appear to be examined over their assets next month.
Mr Justice Peter Kelly directed the O'Donnells, who owe €75 million to Bank of Ireland, to appear in court on April 17th to be examined on their debts and whether they can pay them.
The judge described as "alarming" disparities between two statements of affairs submitted by the couple to the bank, outlining their assets and liabilities filed in March 2011 and February 2012.
The bank is seeking to examine the O'Donnells to explain disparities between their statements of affairs and for the purpose of finding out accurate details.
The court heard that the O'Donnells had claimed that they part or fully owned investment properties in the UK but later said they held them in trust for one or more of their children, Blake, Bruce, Blaise and Alexandra.
Mr Justice Kelly said that he was "not impressed" with how the couple had handled matters.
He said that it was "less than satisfactory" that they failed to appear in court last December in the case with the bank and then Mr O'Donnell, a former managing partner of William Fry solicitors, subsequently gave a media interview complaining about the bank.
"I don't find that an impressive way of dealing with one's obligations," said Mr Justice Kelly, who said he had heard Mr O'Donnell's radio interview on RTE's Marian Finucane Show on December 17th, 2011.
The judge said he was informed this morning an application had been made by the O'Donnells in London seeking bankruptcy. There was a "sense of deja vu" about this, said the judge, given how the couple dealt with the court in December.
The court was told the bank was concerned about the ownership of the family home, Gorse Hill in Killiney, south Co Dublin. The house is held by an Isle of Man company called Vico Limited, which was beneficially owned by the four O'Donnell children.
In March 2011, each of the beneficial owners confirmed Vico owned the legal and beneficial interest in the Gorse Hill and each of the children had no interest right or title to the property except to the extent that they owned the shares in Vico Limited.
The company entered into a guarantee with the bank in March 2011 covering all of the liabilities of the O'Donnells to the bank. Later, in February 2012, the bank was told the guarantee to the bank is "likely to be challenged" by the trustees and beneficiaries.
"This is an entirely novel proposition with no substance whatsoever and raises serious concerns for the bank as it contemplates litigation against it," Des Hanrahan, a director of the bank's specialist property group, told the court.
The O'Donnells said in their February 2012 statement of affairs Gorse Hill was valued at €30 million in 2006 but the current market value of the property is €6 million to €7 million.
Vico gave a guarantee in relation to Brian and Mary Patricia O'Donnell's borrowings from Bank of Ireland of €71.5 million "so the equitable value of the shares is nil", the couple said in their statement of affairs.
