Bloomberg News

Ex-Anglo Irish CEO’s House Sold in Bankruptcy for $3.9 Million

October 17, 2011

Oct. 17 (Bloomberg) -- The trustee liquidating former Anglo Irish Bank Corp. Chief Executive Officer David K. Drumm’s assets to help pay creditors owed more than $14 million received court approval to sell his waterfront home for $3.9 million.

U.S. Bankruptcy Judge Frank Bailey in Boston authorized the sale of the Cape Cod property in an order dated Oct. 4. It’s being bought by Three Sisters Trust, or its designee, and sold by Chapter 7 Trustee Kathleen Dwyer, according to the order.

The house in Chatham, Massachusetts, was bought for $4.6 million in March 2008, according to documents obtained from the Barnstable County Registry of Deeds. Drumm resigned in December 2008 and the bank was taken over by the government weeks later. He filed for Chapter 7 bankruptcy protection in October 2010, listing debts of $14.2 million and assets of $13.9 million.

Anglo Irish Bank, now named Irish Bank Resolution Corp., reported 17.7 billion euros ($24.5 billion) of pretax losses for 2010 tied to the bursting of the country’s property bubble. The bank is suing Drumm in Dublin and in the U.S. in connection with money he allegedly borrowed from the bank. Drumm denies wrongdoing.

The bank, through external spokeswoman Martha Kavanagh, declined to comment on the house sale.

An additional $150,000 will be paid for personal property at the house, bringing the total transaction value to more than $4 million, court papers show. Lorraine Drumm, Drumm’s wife who shares an interest in the house and isn’t in bankruptcy, will be given a portion of the proceeds from the personal-property sale. The order didn’t specify what items are being sold.

The case is: In re David K. Drumm, 10-21198, U.S. Bankruptcy Court, District of Massachusetts (Boston).

--Editors: Jeff St.Onge, Steve Farr.

To contact the reporter on this story: Neil Callanan in London at ncallanan@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net


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