“I am afraid that I cannot regard Mr O’Donnell as a frank, or even a wholly truthful, witness.” Judge Newey in British High Court, 21st December 2012
Yesterday, in London’s High Court, Mr Justice Newey delivered an early Christmas present to Bank of Ireland when he denied the petition by the O’Donnells – husband Brian, and wife Mary Patricia – to be declared bankrupt in the UK. The written judgment is available online here.
The case rested on the so-called “Centre of Main Interest” or COMI, and the Judge ultimately decided that on 27th March 2012, when the O’Donnells petitioned for bankruptcy in the UK, that the COMI was NOT “sufficiently ascertainable by third parties”. The Judge concluded “it seems to me that an objective observer would have taken the O’Donnells ‘ COMI to be in Ireland as at 27 March of this year. I find, accordingly, that the O’Donnells ‘ COMI was in Ireland rather than England when the petitions with which I am concerned were presented. It follows that the petitions must be dismissed”
The O’Donnells contended that a range of business and other interests allowed them to claim England as their COMI. The Judge didn’t agree and was quite scathing of their evidence, particularly that from Brian O’Donnell. Dismissing some oral evidence as unconvincing or unlikely, the Judge was more sympathetic to the wife, but even then, the Judge went on to say “parts of her evidence were, however, less convincing. At points, I felt that she was reflecting the “party” line”
The judgment is interesting in that it confirms substantial commercial and other interests in the UK on the part of the O’Donnells for a lengthy period, yet makes clear the need for debtors to communicate their centre of interest to creditors, and also weighs the evidence to compare different jurisdictions to see which best fits with the COMI definition. Other banks and perhaps even NAMA will scrutinise the judgment, though in the past, NAMA has said it is neutral on the jurisdiction in which a debtor declares themselves bankrupt – not so IBRC which had Sean Quinn’s Belfast bankruptcy overturned.
It is now likely that Bank of Ireland will seek to bankrupt the pair in Ireland where the Personal Insolvency Bill has just now gone to President Higgins for signing into law, but as things stand, the O’Donnells face a 5-12 year bankruptcy term if Bank of Ireland immediately moves against them.
NAMA Wine Lake 
What is the betting (with friends in high places)they get in under the new law and not the old?
The new law automatically brings them in.
Their “art” collection would rival Noel Smyths knick knacks,will take a look at the judgement later it’s first thing,but there was a bit of confusion also over what “assets” they actually owned as opposed to held in trusts.
By one definition not sure how B of I has “won” anything …do they expect to recover more in Ireland ?
“Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply can’t be paid while offering creditors a chance to obtain some measure of repayment based on what assets are available. In theory, the ability to file for bankruptcy can benefit an overall economy by giving persons and businesses another chance and providing creditors with a measure of debt repayment.”
http://www.investopedia.com/terms/b/bankruptcy.asp#axzz2Fmtw5XZF
@camella unfortunately when things like this happen,one tends to have a few less friends than before.
Nice property collection or portfolio,he has a decent ‘eye’ they all appear income producing.With markets improving what’s the ‘panic’ to have him BK ?
Not sure but I think he can’t practice or go to work as a solicitor if he’s BK,bit harsh.
Anyway,good luck Brian all best and hope you have a ‘second’ act,ehm should be no need to ever sign PG’s on income producing property…..assuming B of I won’t recover any more based on jurisdiction one wonders what the motivation for this dog and pony show is,ahh punishment nice !
O’Donnell thought he was someone, but Escape to Bankruptcy in the UK is for the big boys only. You small fry can stew in Ireland instead.
or simply re-apply in the uk… quickly!
BOI & RB, you should be ashamed of yourselves. BOI & RB specifically targeted the O’Donnells from 2005, along with the top 100 developers (we all have the spreadsheet and memo Richie!!) to lend on any terms, no questions asked.
RB promoted and signed off on these and all the other disatrous lending, despite all the advice in BOI that this was leading to disaster. Any dissenting views were shot down and your careers were neutered if you didnt follow RB’s line. As we now see all the shareholers were wiped out by RB’s decisions but because BOI avoided outright nationalisation RB’s OK, even seen as a sucess!!
The O’D have not done themselves any favours but I see them as another casulty of BOI & RB.
If I was the O’Ds I’d ask for the memo signed off by RB recommending lending the O’D’s the money when he was advised not to by his Credit Manager.
Late nite in LA can someone put a mussel on B of I…really,what a sad statement..rein them in this is waste time money and resources.from above link and the boys in the NY choir …link above.
“For her part, Dr O’Donnell said that she and her husband have “decided to come and live in England and try and continue our lives here”. “[G]iven,” she went on, “the treatment that we’ve got in Ireland, it would be very uncomfortable for us living in Ireland any longer”. According to Dr O’Donnell :
“the onslaught and the negative publicity, et cetera, that the Bank of Ireland have generated against us in the media has created such an atmosphere of hate and nastiness that I think we no longer wish to live in Ireland”.
@NWL happy holidays from LA,could ya try treat the ones left behind with some humanity …
“I could have been someone
Well so could anyone
You took my dreams from me
When I first found you
I kept them with me babe
I put them with my own
Can´t make it out alone
I´ve built my dreams around you ”
Don’t take people’s dreams from them,it’s horrid to watch what you guys are doing to each other,they were over leveraged big deal…I’m still proud to be Irish.Fighting people over where they file BK is horrid and I’m inclined agree with the very very nice lady above.
Still proud to be Irish but come on get a grib on the bankers,seriously,enough arguing over the BK venue..tacky,cheap….despicable B of I ..un Irish….it’s almost colonial….oh yes it is.
@John, Happy Christmas in LA! No absence of humanity on O’Donnells the judgment is there, for good or ill, and the judge had little good to say about the O’Donnells in this instance. As for Bank of Ireland and IBRC before it with Sean Quinn and to an extent AIB with Ivan Yates, their practices seemingly differ from NAMA who say it is neutral on bankruptcy venue. And Bank of Ireland has gone to some considerable expense here to force a bankruptcy in Ireland and other than the bankruptcy period and curtailment on employment, BoI get nothing and it doesn’t take away from the fact that a person’s assets are worth less than their liabilities.