Dunne ‘clearly trying to hide €12m D4 pile’

High Court bid to keep ex-tycoon in bankruptcy

‘Creditors just want their cash’

SEÁN Dunne is obviously trying to keep a prestigious Dublin 4 mansion from his creditors, the State’s chief bankruptcy officer has told the High Court.

The 63-year-old, once known as the Baron of Ballsbridge, bought Walford on Shrewsbury Road for €58million back in 2005.

In July 2013, he was forced into bankruptcy in Ireland over a €164million debt to Ulster Bank. He has never been discharged from bankruptcy due to accusations that he has failed to cooperate fully with the process.

This week, the Carlow-born building tycoon is in court fighting attempts by Ireland’s Official Assignee, Chris Lehane, to keep him in bankruptcy until July 2021 and make him pay €5,000 a month until then.

Having previously won a case to force Mr Lehane into the witness box, Mr Dunne was in court Bankrupt: Seán Dunne yesterday to see the official cross-examined.

Mr Lehane told the court: ‘He [Mr Dunne] is obviously trying to hide Walford.’

Celtic Trustees Ltd, acting for a trust associated with tycoon Dermot Desmond’s family, bought Walford for a reported €12million more than a year ago. Yesterday, Mr Lehane agreed with Mr Dunne’s barrister, Barra McGrory, that he believed Mr Dunne ‘was the beneficial owner [of Walford] and still is’.

When Mr McGrory suggested his client was never the beneficial owner of the mansion, as it was ‘bought for his wife Gayle Dunne’, Mr Lehane replied: ‘I can’t agree to that. I can agree that’s his contention now.’

Mr McGrory put it to Mr Lehane that he was ‘fixed in your belief that he’s the beneficial owner, as he’s fixed in his belief that he’s not’.

Mr Lehane replied: ‘Yes… I agree that he’s been expressing that for quite some time.’

When Mr Lehane later added: ‘Walford is still effectively owned by the Dunnes’, Mr McGrory retorted: ‘There I beg to disagree.’

Mr Dunne was officially due to exit bankruptcy by July 2016. However, it was extended by court order due to his alleged lack of cooperation and allegations that he may have been ‘hiding assets’.

From the witness box, Mr Lehane also denied that Mr Dunne had been kept in bankruptcy for the past five years because his creditors wanted to ‘exert maximum pressure’ on him.

Even if Mr Dunne had been discharged by July 2016, there would have been a ‘continuing obligation’ on him to cooperate with the State even after that, Mr Lehane said.

The Official Assignee added: ‘I don’t need Mr Dunne in bankruptcy to continue my actions, to get success, to put pressure on Mr Dunne.’

Mr Lehane also insisted that no bank official – from Ulster Bank or any other creditor – ever told him to keep the businessman in bankruptcy.

Mr Lehane said he believed that creditors ‘want cash, not more legal proceedings’.

The hearing continues.