FORMER ANGLO Irish Bank chief David Drumm had offered to sell homes in Malahide, north Co Dublin, and Cape Cod in Massachusetts, US, and pay some of the sale proceeds to the bank as part of a settlement of its action against him.
The bank has rejected Mr Drumm’s proposal to settle its action to recover €8.3 million in loans from him, and has offered him a counter-proposal. Discussions are believed to be ongoing.
It’s understood Mr Drumm had, as part of his proposal, offered to withdraw his counterclaim for €2.6 million in salary, pension and deferred bonus payment which he said are due to him.
He also offered the bank his full pension, understood to be worth €5.4 million, under which he is entitled to receive €271,000 a year from the age of 55. In addition, he proposed selling his home on the Abington estate in Malahide, on sale last year for €2.3 million, and home at Stage Neck Road in Chatham, Massachusetts, and pay some of the proceeds to the bank.
It is not clear how much Mr Drumm had offered to pay from the proceeds of these sales, and these transactions have been described as not straightforward.
Mr Drumm’s legal team is thought to have claimed the total value of his offer was in excess of the loans due. However, the bank is believed to have raised queries about the value of his pension if drawn upon before his retirement.
The bank is also disputing whether Mr Drumm is owed the €2.6 million he is counter-claiming as he resigned as chief executive in December 2008 over Seán FitzPatrick’s hidden loans.
Mr Drumm is arguing his employment was not validly terminated in early 2009. He contends that although he stepped down as chief executive, he remained an employee of the bank. He has claimed he is entitled to notice payment equal to his annual salary of €1.2 million; 12 months’ pension payments of €715,000 and €44,000 in benefits, and a deferred 2006 bonus of €661,000.
Anglo’s counterproposal involves Mr Drumm making a commitment to repay his loans at the bank in full from any future earnings as part of a settlement offer.
The bank is thought to be intent on securing the full amount due.
The Commercial Court was told last week Anglo had rejected a series of proposals from Mr Drumm aimed at settling the action against him but had offered a counter-proposal on July 14th.
Mr Drumm provided a statement of net worth before the bank taking its action last year. However, the bank is seeking an independently verified statement of Mr Drumm’s financial affairs showing his assets and liabilities.
Anglo has also issued proceedings against Mr Drumm and his wife, Lorraine, over the transfer of their house at Abington into her sole name. The court is due to hear that case after Anglo’s loans action concludes. The action is scheduled for hearing on October 26th .
