Anglo to write-off directors’ loans
Anglo Irish Bank is prepared to write-off €109m-worth of loans as former directors, including Sean FitzPatrick, failed to repay.
Irish Finance Minister Brian Lenihan recently said the bank would pursue former directors with loans to the “ends of |the earth”.
But the bank is preparing to write-off many of the loans on the basis directors cannot or will not repay. Anglo sources said yesterday most former directors are co-operating with the bank, but many are saying they simply do not have the money.
At the end of 2009 the bank had €155.2m in loans outstanding to directors and former directors, but after taking an “impairment” on these there was €46.3m outstanding.
The majority of loans were advanced in a “personal capacity” to directors and former directors, the bank's annual report shows. In an unprecedented move, the bank has disclosed individual loans and whether they are in arrears.
The largest amount of director's loans were held at the end of 2009 by former chairman Sean FitzPatrick, who had €88.7m of loans. According to the accounts the bank had to make a provision of €67.9m because the loans are not expected to be repaid.
The second largest number of loans outstanding were to Lar Bradshaw, who made a number of investments with Mr FitzPatrick. According to the report Mr Bradshaw had €28.5m of loans outstanding with the bank, with provisions of €21.9m covering most of these loans. The provision is taken based on the likelihood repayment will not come through.
Gary McGann also had large sums in loans from the bank, amounting to €10.6m at the end of 2009. The report does not include any provision for McGann's loans not being repaid.
Willie McAteer, a former director who was recently arrested and questioned, had €8.5m of loans outstanding. The bank took a major provision on McAteer's loan worth €7.6m.
The former chief executive David Drumm was also advanced loans totalling €8.3m.