Ulster Bank to serve bankruptcy proceedings on Sean Dunne in US court

Tuesday 12 February 2013 23.32
Counsel for Ulster Bank said Sean Dunne is in the US on a temporary business visa
Counsel for Ulster Bank said Sean Dunne is in the US on a temporary business visa

Ulster Bank has been given permission to serve bankruptcy proceedings in the US on developer Sean Dunne over a €164m debt.

The move comes as the Superior Court of Connecticut is being asked to throw out a claim by NAMA.

NAMA says the transfer of a half-share in a Geneva apartment from Mr Dunne to his wife Gayle Killilea was "fraudulent" at a time when Mr Dunne owed significant debts to the agency and to banks in Ireland.

Today in the High Court, Bernard Dunleavy BL, for Ulster Bank, was given leave by Ms Justice Elizabeth Dunne to serve bankruptcy proceedings on Mr Dunne outside the jurisdiction.

They relate to a €164m debt owed by Mr Dunne allegedly arising out of guarantees he executed over loans for the redevelopment of the Jurys Hotel site in Dublin.

Mr Dunleavy said judgment had been obtained against him in May last year for €164m.

While he is living in at an address at Indian Field Road, Greenwich, Connecticut, he is an Irish citizen, carries on business in Ireland, acts as a landlord in Ireland and his family continues to reside in Ireland, counsel said.

Insofar as he is resident in the US, he is there on a temporary business visa, he said.

While such applications were normally made in the bankruptcy court in Dublin on Mondays, the bank had sought to make it now as Mr Dunne is due in court in relation to other proceedings in Stamford, Connecticut, this Friday and he could be served then, counsel said.