Dragon’s Den star Sarah ‘ bankrupt in the UK owing €6m’
DJ Carey’s ex-partner Sarah Newman in AIB case
FORMER Dragons’ Den star Sarah Newman was declared bankruptcy in the UK less than a week before she was set to be questioned in the Dublin High Court about her debts to AIB, it has emerged.
The 47-year-old ex-RTÉ star’s legal move – which was carried out on election day – means no Irish creditors can seek orders enforcing judgments on debt against her while the UK process is ongoing.
Just under five years ago, the former dot.com millionaire and her then partner, Kilkenny hurling legend DJ Carey, had each consented to court orders to repay about €9.5million to AIB.
It’s understood the bank claims Ms Newman still owes more than €6million.
The original court orders were made in 2011 on foot of bank loans the couple had secured against two upmarket properties at Ladycastle, an exclusive enclave in Co. Kildare’s K Club.
The couple – who have since split up –
‘Will investigate how debts were run up’
had also given guarantees over each other’s debts. The Commercial Court previously heard that the loans were drawn down as part of a wider restructuring of her then partner DJ Carey’s business.
AIB had wanted Ms Newman to attend the High Court’s commercial wing in Dublin yesterday to answer questions from the witness box about why she hasn’t paid all the money back yet.
However the hearing was postponed after the court heard the mother of two was believed to have been adjudicated bankrupt in the UK.
James Doherty, for AIB, told the court he was not proceeding with the planned cross-examination in light of that overseas development.
Mr Justice Brian McGovern agreed to strike out the motion to cross-examine the businesswoman – but gave the bank permission to re-apply to cross-examine her at a future date if the need arises.
The Irish Daily Mail has learned that Ms Newman went bankrupt in Bury St Edmunds in Suffolk, England, on February 26 – and will be automatically discharged from her bankruptcy by February 26, 2017, as long as she co-operates with the process. According to her online insolvency report, seen by the Mail, her last-known address is in Bury St Edmunds and she is described as ‘unemployed’.
The report also lists her previous address in Dublin’s Monkstown.
Well- pl aced UK i nsolvency sources told the Mail that Ms Newman presented her own bankruptcy petition to a county court in Bury St Edmunds last week.
Next, the Cambridge-based Bankruptcy Trustee who will handle her debts and assets, Julian Goode, will ask Ms Newman to attend for an interview to ‘investigate how her debts were run up’, a UK source explained. Mr Goode i s now charged with securing assets from Ms Newman for distribution among her creditors.
She sold her highly successful needahotel.com website in 2006 for at least €30million and earned herself a place on Ireland’s rich list.
AIB first sued Ms Newman – who was a lady captain of the K Club – and Mr Carey in January 2011 and secured debt repayment court orders for about €9.5million against each of them in May 2011.
Yesterday AIB had been expected to apply to the High Court’s commercial wing in Dublin for permission to question Ms Newman in the witness box about what assets she may have to help repay what she owes.
Ms Newman was not in court when the hearing was abandoned by agreement between the two sides.
As part of her previous efforts to pay off her debts, Ms Newman reportedly sold her multi-millioneuro ski resort holiday home Chalet Grace at the foot of the Matterhorn Mountain in the Swiss Alps in 2011 – along with her mansion in Dublin’s Monkstown in 2012.
She later claimed it was ‘cathartic’ to downsize to a rented house, telling a newspaper in December 2012: ‘I have moved to a smaller house, but that was my choice and my children’s choice… I feel relief. I feel free. I feel happy.’
Yet, she was still not free of debt. It was reported in June 2013 that Ms Newman was in talks with creditors about resolving her debts.
She had been due to marry her partner DJ Carey in the summer of 2011 but they went their separate ways the following year. Just under a year ago, a report claimed she had found love again with one of Ireland’s leading lawyers.