FORMER ANGLO Irish Bank chief executive David Drumm agreed at a private meeting with the bank last October to arrange for “an independently certified statement of affairs” to show he could repay outstanding loans of €8.3 million.
The meeting took place on October 7th, two months before the bank issued proceedings against Mr Drumm to recover the loans from him. Anglo conceded last week that Mr Drumm had an arguable defence to the bank’s claim for a €8.3 million judgment.
Following the October meeting, the bank sought “to formally update” Mr Drumm’s financial status by requiring independent valuations on three properties.
The properties were a house on the Abington estate in Malahide, Co Dublin, a property at The Way in Skerries, Co Dublin, and Mr Drumm’s current residence in the United States, a house on Stage Neck Road in Chatham on Cape Cod in Massachusetts.
Anglo also asked of the whereabouts of the equity proceeds from the sale of a property on Cape Cod at Cross Street in Chatham. Mr Drumm sold the property for $412,000 on September 17th last.
He replied to Anglo saying that the proceeds from the sale had been lodged to his bank account and was included in “cash at bank” on the statement of affairs.
Mr Drumm later told the bank in a letter dated November 16th that he had presented a statement of net worth at the meeting with chief executive Mike Aynsley, which showed he had sufficient assets to his liabilities to the bank.
“Like many borrowers, all I need is to agree a time schedule for repayment,” Mr Drumm said in the letter to the bank’s chairman Donal O’Connor in November.
Mr Drumm is counter-claiming for €2.6 million from the bank over the termination of his employment and loss of bonuses.
The case has been listed to come before the court again for further directions on March 8th.
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