Sean Fitzpatrick has been declared bankrupt by the High Court after a proposal he made to repay a debt he has with state owned Anglo Irish Bank to the tune of €110m was rejected. Representatives for Mr Fitzpatrick during a brief meeting on the 12th of July told the court that he was "bowing to the inevitable" after he failed to get the support of Anglo Irish Bank in relation to a proposal he made with his creditors. Mr Fitzptarick's assets and debts are now under the control of the official assignee, a court appointed representative under the bankruptcy legislation.
Cork businessman John Fleming is opposing AIB's attempts to reclaim €26 million worth of loan guarantees which were issued to him so that he could buy a majority shareholding in a US energy company. Mr Fleming is defending his claim on multiple grounds including that he borrowed as a consumer and therefore is entitled to the protections offered to consumers under the Consumer Credit Act.
Mr Fleming is claiming that there were irregularities in the way in which the guarantee was executed. He claims to have had agreements in place with the bank so that certain assets of his including his home would be protected.
This will certainly be a case to follow and it will be interesting to see what irregularities show up during this trial.
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