The Anglo Irish Bank have rejected a number of proposals from former CEO David Drumm in an effort to settle more than $10million in unpaid loans.
On Monday a Commercial Court in Dublin rejected Drumm’s series of proposals to repay the loans. However, the bank had made a counter-proposal to him on July 14 the court heart.
Drumm’s attorney has asked for clarification in matters relating to the counter-proposal.
Judge Peter Kelly gave until July 30th for Drumm’s response to the counter-proposal.
If the counter-proposal is not accepted, the full hearing of the bank’s proceedings against Drumm will begin on October 26th.
Drumm, who resigned from his post in December 2008 amid scandals about the lending practices of the bank, is claiming that the bank never validly terminated his contract in early 2009 and by demanding the immediate repayment of the January 2008 loans breaches the loan agreement signed.
Drumm, 43, claims Anglo owes him some nearly $3million in salary, pension and deferred bonus payments and also wants damages, including damages for “mental distress”.
Drumm has been living in Chatham, Cape Cod for the past year in a $4.6 million waterfront home.
To date no former Anglo Irish officials, including Drumm, have been charged with wrongdoing.
The Irish government took over Anglo Irish Bank in January 2009 after the bank posted the largest corporate loss in Irish history, which cost taxpayers $16 billion.
According to the Irish press, Drumm was advised by bank officials to move to the U.S. to avoid the “blame culture’’ of Ireland and Britain.
Drumm and his wife bought the Chatham home in March 2008 and own a second one nearby that they bought seven months later for $2.6 million.
Drumm first arrived in Boston in 1997, sent there to establish a U.S. client base for Anglo Irish. He was successful from the outset, and Drumm struck up partnerships with some of the region’s largest commercial builders.
Meanwhile, the former Anglo Irish Bank chief is understood to be sharing a building with an Irish multi-millionaire developer who has been charged with the citywide dumping of asbestos.
Developer John McGrail, 46, is also accused of evading unemployment insurance and failure to keep pay records in connection with the alleged dumping. The association between the two men is said to extend to a series of loans.