News

Anglo seeks to recover €70m from FitzPatrick

Thursday, 11 March 2010 22:31

Anglo Irish Bank has begun legal action to recover loans of €70m to its former chairman Sean FitzPatrick.

The bank entered a summary summons in the High Court this afternoon. Mr FitzPatrick had a deadline of yesterday to submit proposals to repay the loans.

The bank today took the first step to initiate legal action to recover its money. It is understood Anglo is seeking repayment of €70m.

In the company's financial results last year, loans to Mr FitzPatrick were then listed as €106m.

A meeting of the bank's shareholders was told last year the former chairman had invested in film finance deals, his pension, property and Anglo shares.

He also had put funds into a Nigerian oil project and a casino in Macau in Asia.

The loans were hidden from investors for eight years. When they were revealed in December 2008, Mr FitzPatrick had to stand down as chairman.

By issuing a summons today, it means there will be a hearing in the Commercial Court. Mr FitzPatrick will have an opportunity to enter a defence.

The bank will seek a judgment against Mr FitzPatrick. If it is granted that judgment, it would mean it could take steps to seize his assets if it wished.

The Minister for Finance has said the money owed by Sean Fitzpatrick to Anglo Irish Bank must be paid and the bank's management team will pursue it to the ends of the earth.

The move against Mr FitzPatrick follows legal action by the bank against its former Chief Executive David Drumm to recover loans of €8m.