Belfast Telegraph

Former Anglo-Irish boss ‘bankrupt’

The former head of Anglo-Irish Bank Sean FitzPatrick is expected to be officially declared bankrupt on Monday, it was confirmed yesterday.

Lawyers for the ex-banker, who owes the now nationalised lender more than €100m (£83m), applied to have a special court protection blocking the move lifted.

The Republic's High Court had given Mr FitzPatrick several months to put his financial affairs in order and strike a repayment deal with creditors.

However, in a short hearing just before 1pm, Justice Brian McGovern agreed to lift the protection from bankruptcy and cleared the way for Mr FitzPatrick to declare himself unable to pay debts on Monday.

Mr FitzPatrick, who resigned from Anglo in December 2008 in a storm over directors' loans, was not in court.

A judge will decide on Monday whether to officially seal the bankruptcy.

He has been embroiled in delicate negotiations with banks, including his former employer Anglo-Irish, since January 2009 when the institution was put into the hands of the Irish state. It is understood Anglo-Irish blocked a proposed settlement deal with the banker's creditors.

He is also at the centre of a fraud and corporate mismanagement investigation by Garda and watchdog Paul Appleby, the director of Corporate Enforcement.

Mr FitzPatrick was arrested in March and questioned about a transfer of €7.45bn (£6.2bn) in deposits between Irish Life Permanent and Anglo in 2008. The scheme was devised to effectively conceal the state of the bank's books. No charges have been brought.

Belfast Telegraph