Sean FitzPatrick to file for bankruptcy

Friday 09 July 2010 20.37
Sean FitzPatrick - Anglo blocked proposed settlement
Sean FitzPatrick - Anglo blocked proposed settlement

Former Anglo Irish Bank Chairman Sean FitzPatrick will ask the High Court on Monday to declare him bankrupt.

Lawyers for Mr FitzPatrick told the High Court today that his largest creditor, Anglo Irish Bank, had blocked a proposed settlement deal with his creditors.

Senior Counsel Mark Sanfey said his client wanted to petition the court to be adjudicated bankrupt.

Mr FitzPatrick had ‘taken the view that he should pull the plug on the process at this stage,’ Mr Sanfey said.

Mr Justice McGovern asked if there was any danger that by lifting the protection order that Mr FitzPatrick will be able to deal with his assets as he wished.

However, Mr Sanfey gave an undertaking to the court that Mr FitzPatrick would not do so.

On the basis of this undertaking, Mr Justice McGovern lifted the court protection from Mr FitzPatrick and said he will allow a hearing for bankruptcy on the matter on Monday.

Creditors were expected to vote on a settlement proposal at a court hearing on Monday - that will not now go ahead. It was expected that Anglo Irish would have blocked any settlement proposal.

Mr Sanfey told the court that Mr FitzPatrick did not have the majority required to secure approval for the settlement proposals as Anglo held more than 40% of his outstanding loans.

The State-owned bank is owed €110m by Mr FitzPatrick.