TIM HEALY – 07 OCTOBER 2013
THE
High Court has given permission to the family of bankrupt former billionaire Sean Quinn to serve legal proceedings on
former Anglo Irish BankCEO David Drumm in the United
States.
The Quinns intend to sue Mr Drumm in
the Irish courts, along with ten other former Anglo directors, and the Central
Bank and Department of Finance in their capacity
as regulators, over loans of some €2.34bn allegedly unlawfully issued by
Anglo to Quinn companies during 2007 and
2008.
It is alleged those loans were intended
to fund margin calls on financial derivatives, known as "Contract for
Difference" (CFD) positions, held by the Quinn family in Anglo shares.
Mrs Patricia Quinn and her five children
claim Mr Drumm was, between 2004 and 2008, directly involved in, and played
"a leading role" as CEO, in the alleged actions of Anglo.
The ten former directors are - Declan
Quilligan, Wetherby Place, London; Patrick Whelan, Coast Road, Malahide, Co
Dublin; Lar Bradshaw, Church Road, Killiney, Co Dublin; Fintan Drury, Old
Russian Village, Kilquade, Co Wicklow; Noel Harwerth, Grosvenor Square, London;
Anne Heraty, Highfield Road, Rathgar, Dublin; Michael Jacob, Newtownpark
Avenue, Blackrock, Co Dublin; Willie McAteer, Auburn Villas, Rathgar, Dublin;
Gerard William McGann, Stonehouse, Donnybrook, Dublin; and Edmond Francis Sullivan, Linden Fields, Grove Avenue,
Blackrock, Co Dublin.
The Quinns allege the former directors
either collectively or individually authorised the advancing of loans to Quinn
companies and this was illegal and/or wrongful and caused damage to the Quinns.
They are claiming damages against all
defendants for alleged conspiracy, breach of duty including statutory and
fiduciary duties, negligence, and misfeasance in public office.
In reply to Mr Justice Kevin Cross
yesterday about the "status" of Mr Drumm, Martin Hayden SC,
for the Quinns, said Mr Drumm was not a bankrupt and his side were proceeding
against him.
Counsel also indicated his clients
would apply at a later stage to have their proceedings against the various
defendants fast-tracked in the Commercial Court.
The Quinns intend these latest
proceedings against the regulators and former directors will be consolidated
with their existing proceedings against Irish Bank Resolution Corporation
(IBRC) in which they contend they are not liable for the €2.34bn loans on
grounds those were unlawfully made to prop up Anglo's then plummeting share
price.
The existing action against IBRC, known
as the main action, has been "parked" pending the conclusion of
criminal proceedings against Mr Whelan, Mr McAteer and former Anglo Chairman Sean Fitzpatrick, who has been adjudicated
bankrupt.
Yesterday, Mr Justice Cross granted Mr
Hayden leave to issue proceedings against Mr Drumm and to serve the papers on
him at an address at Old Colony Road, Wellesley, Massachusetts, USA.
In the intended proceedings, the Quinns allege the
defendants, their servants and/or agents conspired to commit illegal and/or
unlawful acts through breaches of Section 60 of the Companies Act and the
regulations issued under the EC Market Abuse Directive.
No comments:
Post a Comment