The High Court has granted an order assisting the US trustee in bankruptcy who is administering the estate of former Anglo Irish Bank chief executive David Drumm.
The trustee, Kathleen P Dwyer, had sought the 'order in aid' from the Irish courts as a bankruptcy in the US is not automatically recognised by the authorities in this state.
The order will allow the home of Mr Drumm and his wife Lorraine, which had been transferred into his wife's name, to be sold and the money distributed to Mr Drumm's creditors in the US bankruptcy proceedings, who include Anglo Irish Bank.
Mrs Drumm has already given an undertaking to the Commercial Court to set aside the transfer of the house, said to be worth €2.1m. There is currently an injunction in place preventing her from doing anything with the conveyancing of the house.
Ms Justice Elizabeth Dunne accepted that the bankruptcy proceedings in the US were equivalent to such proceedings in this jurisdiction. She said it seemed to her that it was to the benefit of Mr Drumm's creditors to facilitate the trustee in this case.
She said it was appropriate to make such an order so that the property in this jurisdiction could be dealt with by the trustee in bankruptcy for the benefit of all of the creditors.
The action being taken by Anglo Irish Bank against Mr Drumm for the repayment of loans of more than €8m is due back before the Commercial Court tomorrow.
