SIMON CARSWELL Finance Correspondent
VALUERS FOR the National Asset Management Agency (Nama) cut the valuation given by Anglo Irish Bank to four of Paddy McKillen’s prime US properties by 27 per cent but said that his five-star London hotels were worth 10 per cent more than the bank had assessed.
The properties valued included Anglo’s US head office at 265 Franklin Street in Boston. This was valued by the bank at $131 million (€93 million) compared with a final valuation of $95.6 million set by Nama.
Details of the valuations were provided in filings submitted by Nama in the High Court case taken against the agency by Mr McKillen, a property investor.
The hearing of the case finished yesterday before a three-judge division led by Mr Justice Nicholas Kearns, the president of the High Court. Judgment will be given on November 1st.
Anglo valued the five-star Claridge’s, Berkeley and Connaught hotels in London and properties linked to the Maybourne Hotel Group at £822 million (€934 million); the final valuation agreed by Nama was 10 per cent higher at £905 million.
A final value of £424.9 million was assigned to Claridge’s by Nama for the transfer of Anglo’s loans on the hotels to the agency. The Berkeley was valued at £246.4 million and the Connaught was valued at £183.6 million.
Two other properties associated with the hotels – one in Mayfair and the other in Knightsbridge, London – were valued at £28.8 million and £22.2 million respectively in final valuations set by Nama.
Full story here http://www.irishtimes.com/newspaper/finance/2010/1015/1224281153988.html
Mean while again SIMON CARSWELL and MARY CAROLAN tells us
FORMER ANGLO Irish Bank chief executive David Drumm has filed for bankruptcy in the United States after the State-owned bank rejected his proposal to settle its legal action in the High Court in Dublin over loans of €8.5 million.
Mr Drumm applied for bankruptcy in a Boston court in Massachusetts near his US home at 3pm Irish time yesterday in advance of the bank’s case starting on October 26th.
Lawyers for Mr Drumm told the commercial division of the High Court in Dublin a short time later that Anglo had last Friday rejected a final settlement offer that he had proposed on September 24th.
He had offered to hand over all assets to Anglo excluding personal effects such as clothes and jewellery, his lawyers said.
Anglo’s counsel told the Dublin court that the US bankruptcy application was “quite an extraordinary turn of events” and that the bank had only just become aware of it.
Lawyers for Mr Drumm said he had “bent over backwards” to reach a settlement of the action. Counsel for Anglo said that it was “a bit rich” for Mr Drumm to seek to take the “high moral ground”.
It is understood that Mr Drumm claims that he proposed handing over assets to Anglo valued at €10.8 million to settle the action.
The 44-year-old former bank chief had offered to put up his €5.4 million pension, under which he is entitled to annual payments of €271,000 from the age of 55.
The assets on offer included half the proceeds – estimated at €1 million – from the sale of a house at Abington in Malahide, Co Dublin, and the transfer of another property in Cape Cod, Massachusetts.
He also offered to hand over €200,000 covering his half-share of a property in Boston which his wife bought from her own funds.
His lawyers had claimed in their September 24th settlement offer that he was “frustrated with the un-commercial stance being adopted by the bank in relation to his proposals”. Following his application, Mr Drumm may retain his €5.4 million pension and could emerge from bankruptcy within a much shorter period than in Ireland. An official appointed by the US court will now liquidate all his assets through forced sales in a move which may result in Anglo recovering a lower amount.
Under the shareholder agreement with the State-owned bank, Minister for Finance Brian Lenihan has control over the bank’s dealings on the loans with former directors.
It is understood that the Minister instructed the bank to take whatever action necessary to secure full repayment of the debts. Anglo’s lawyers claimed in correspondence last July that the Minister was aware of Mr Drumm’s attempts to settle.
It had been anticipated that Mr Drumm would use the hearing of the bank’s action later this month to meet voluntarily with gardaí and other investigators examining the collapse of Anglo, which is costing the State up to €34.3 billion.
Planning such a meeting was now “up in the air” following Mr Drumm’s bankruptcy application, said a well-placed source.
The High Court was told the US court action may or may not disrupt Anglo’s case but this was out of Mr Drumm’s hands, his lawyers said.
It is understood that Mr Drumm has had extensive contact with the Garda Bureau of Fraud Investigation and the Office of the Director of Corporate Enforcement about their investigations and in relation to planning a meeting with them. It is also understood that he has recently made contact with the Government’s commission of investigation, led by former senior Finnish civil servant Peter Nyberg, which is investigating the causes of the banking crisis.
Anglo’s case will be returned before Mr Justice Peter Kelly, who has been managing the case, in the Commercial Court next Tuesday.
This is unbelievable stuff why are we even giving this guy the time of the day he should be brought back in handcuffs and forced to divulge all he knows about the fraud that went on in this toxic bank. This Pusey footing does not go on to the thousand of decent people that cannot pay their TV licenses and their ESB bills they are brought before the courts for the pittance the owe and yet we have this guy who was at the heart of this corrupt toxic bank that has cost us Billions and possible up to 50,000,000,000:00 billion trying to dictate terms.
We must see prosecutions and jail time been dispensed to all the crooks and no exceptions!
That is why we need a totally new kind of representive in the next Dail people who are not part of the in circle but ordinary people who know which side of the car there petrol cap is on, people who know that our bills are going up and not going down as advocated by our politicians
People who know what it is like to struggle to pay their mortgages in other words we need real people living on the same planet we the ordinary people have to live on and not the pampered planet our TD’s have been living on most of their lives
we need to overhall system ,its time for renewal and it can’t come soon enough
A word of warning, the politicians are contemplating ways to cling on to their plum jobs and perks by trying to extend the life of this corrupt and so out of touch government with this notion of a “national government” any such attempt to deprive the public of their democratic right to have a say in their own destiny as laid out in the Irish constitution will bring the public out on to the streets big time .We need a new political mandate to see us through the tough decisions that have to be made but it would be a major mistake to allow the very people and their cronies who caused this disaster to stay in power. Clear them all out and start afresh I say!