Bankruptcy trustee agrees $1.3m deal with Drumm's wife

Lorraine Drumm, the wife of the former chief executive of Anglo Irish Bank David Drumm, has reached a settlement in the US that will see her get $1,294,359 (€985,531).

The Drumms’ former family home in Abingdon, Malahide, is for sale for €1.65 million. Under the arrangement, Ms Drumm is to get half the proceeds from the sale of the house but has to settle a mortgage on the house from her share.

The deal was reached with the bankruptcy trustee in a case taken in Massachusetts by Mr Drumm, who has sought to be made a bankrupt there.

The trustee, Kathleen Dwyer, started a fraudulent transfer action in September of last year against Ms Drumm, who contested the allegations made. The deal which has now been arrived at will see that action dropped.

Mr Drumm filed for bankruptcy in Boston in October 2010 after failing to reach a settlement with Anglo, which is owed €8.5 million.

Mr Drumm bought the house in Malahide 2003. In 2009, he transferred the property into the sole name of his wife. Anglo claimed this transfer was fraudulent and brought a case against the couple. The transfer was then reversed.

* This article was amended on April 18th, 2012 to correct a factual error.