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Friday, March 12, 2010
ANGLO Irish Bank has initiated legal action against controversial former chairman Sean FitzPatrick over unrecovered loans amounting to about €70 million.
The now nationalised bank was refusing to comment on the matter, but it has been confirmed that a summary summons has been entered to the High Court, meaning that there will be a hearing in due course in the Commercial Court.
The move, which has been welcomed by Finance Minister Brian Lenihan, follows up promises made by both the minister and Anglo’s new management team late last year, that any former director of the bank who was not repaying outstanding loans would be pursued through the courts.
The move to recover loans made to Mr FitzPatrick, the highest profile case in the controversial directors’ loans scandal at Anglo, follows on from the bank starting legal action against former chief executive David Drumm to recover loans valued at €8m.
Loans to leading Anglo directors, including Mr FitzPatrick, were hidden from shareholders and not included in the bank’s annual accounts for eight years.
Mr FitzPatrick’s debt amounted to as much as €106m at one stage.
Shareholders present at the bank’s fractious extraordinary general meeting last year heard how Mr FitzPatrick used the loans for a number of risky investments, including exploration projects, film finance deals and a casino business in the Far East.
It is understood Mr FitzPatrick will have an opportunity to enter a defence and that Anglo will seek a judgment against him, which, if granted, could see the bank seizing his assets.
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