Irish high court aids US trustee in Drumm bankruptcy

The Irish High Court has granted an order to assist a US trustee in administrating the bankruptcy of former Anglo Irish Bank CEO David Drumm.

Kathleen P Dwyer, named as the trustee, sought the order from the Irish courts because a bankruptcy in the US is not automatically recognized by the authorities in Ireland.

The new order will allow the Irish home of Drumm and his wife Lorraine to be sold and the money distributed to Drumm's creditors in the US bankruptcy proceedings, who include Anglo Irish Bank. The Drumm's Irish house is said to be worth 1.2 million euro.

Justice Elizabeth Dunne accepted that the bankruptcy proceedings in the US were the equivalent to proceedings in Ireland, and she said it was to the benefit of Drumm's creditors to facilitate the trustee in this case.

Dwyer said she was asking the Irish courts to assist in releasing property and any other assets Drumm holds in the Republic for the benefit of his creditors.

The action being taken by Anglo Irish Bank against Drumm for the repayment of loans of more than 8 million euro is due back before the Commercial Court tomorrow.