FORMER ANGLO Irish Bank chairman Seán FitzPatrick has been given a deadline of mid-March to repay his loans to the bank to allow him time to benefit from a possible gain on an investment in an Nigerian oil field.
It is understood that Mr FitzPatrick, who was listed as owing €106.8 million in the bank’s most recent published accounts, stands to benefit from possible developments on the investment in Nigeria over the coming weeks.
As a result, the bank has given Mr FitzPatrick until the middle of next month to come up with a repayment schedule to take advantage of the developments with the African project, in which he has a 25 per cent stake. The oil fields were reported to be close to continuous production last year.
The delay will also benefit businessman Lar Bradshaw, a former non-executive director of Anglo who is a co-investor with Mr FitzPatrick in the Nigerian project, potentially allowing him to reduce his loans with Anglo significantly.
The bank has been pressing former directors and senior executives to come up with repayment plans on their loans.
This process intensified after Mike Aynsley was installed as chief executive at the bank last September.
Anglo launched a legal action against its former chief executive, David Drumm, last November to recover loans of €8.3 million and overturn the transfer of a property into his wife’s name.
Mr Drumm submitted a strong response to the High Court challenge and the bank has conceded that he has an arguable defence to its claim.
This prevented the bank from securing a summary judgment last month in its favour for the amount owing by Mr Drumm. The action will now go to a full court hearing.
Under an agreement with Anglo, the Minister for Finance must approve any legal action against former Anglo executives.
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