Irish Bank Resolution stay relief denial order draws Clarendon appeal

By Caroline Salls

Pittsburgh, Nov. 15 – An order denying a motion for relief from the automatic stay in Irish Bank Resolution Corp. Ltd.’s Chapter 15 bankruptcy case, made in an effort to file a lawsuit against Irish Bank foreign representatives Kieran Wallace and Eamonn Richardson, was filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware by the parties who requested the stay.

As previously reported, Paddy McKillen, Anthony Leonard and Clarendon Properties Ltd. sought relief from the stay in a July 13 motion.

“By the adversary complaint, the movants seek redress by individuals and a partnership who have been and are being harmed in the United States directly as a result of misconduct engaged in by the foreign representatives under the protections of this court,” the stay relief motion said.

“As foreign representatives, the defendants are compelled to observe certain standards of care and codes of conduct in their dealings with creditors and persons in interest in the liquidation estate and have failed to do so.”

Through their adversary proceeding, McKillen, Leonard and Clarendon said they are seeking a monetary judgment against Wallace and Richardson “arising out of their personal misuse of the Chapter 15 process for: (i) breach of their duties of care to the Clarendon parties; (ii) fraud, misrepresentation and/or perpetuation of a prior fraud or criminal act in violation of their duties of care to the Clarendon parties; and (iii) negligent misrepresentation or equitable fraud in violation of their fiduciary duties to the Clarendon parties.”

In addition, the Clarendon parties are asking the court to terminate its recognition of Wallace and Richardson as foreign representatives of Irish Bank.

Irish Bank Resolution, a Dublin-based successor to Anglo Irish Bank, filed for bankruptcy on Sept. 17, 2013. The Chapter 15 case number is 13-12159.

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