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Irish property pair launch bankruptcy battle Irish property pair launch bankruptcy battle
(about 2 hours later)
An Irish couple who once owned €1bn (£800m) worth of luxury properties around the world have begun a legal battle to declare themselves bankrupt in the UK – while living in a €13m five-storey townhouse in central London.An Irish couple who once owned €1bn (£800m) worth of luxury properties around the world have begun a legal battle to declare themselves bankrupt in the UK – while living in a €13m five-storey townhouse in central London.
Brian and Mary Patricia O'Donnell on Thursday asked the high court to declare them bankrupt in London rather than Ireland.Brian and Mary Patricia O'Donnell on Thursday asked the high court to declare them bankrupt in London rather than Ireland.
The O'Donnells, who are living live in a grade-II listed townhouse just 200 metres from the Houses of Parliament, are accused of being the latest in a long line of "bankruptcy tourists" fleeing Ireland to take advantage of the UK's more lenient bankruptcy laws.The O'Donnells, who are living live in a grade-II listed townhouse just 200 metres from the Houses of Parliament, are accused of being the latest in a long line of "bankruptcy tourists" fleeing Ireland to take advantage of the UK's more lenient bankruptcy laws.
In the UK the bankruptcy period lasts for only one year, while in Ireland financial purdah often lasts for 12 years. In the UK, the bankruptcy period lasts for only one year, while in Ireland financial purdah often lasts for 12 years.
Lawyers for the Bank of Ireland, which is suing the couple for €75m of debts in an Irish court, objected to the O'Donnells' filing in London and said they should be forced into bankruptcy in Ireland.Lawyers for the Bank of Ireland, which is suing the couple for €75m of debts in an Irish court, objected to the O'Donnells' filing in London and said they should be forced into bankruptcy in Ireland.
High court registrar Nicholls told the couple, a lawyer and a psychiatrist, there was no question that they were bankrupt, but warned them they would likely be forced to take the stand to defend their request to file for bankruptcy in the London. "They may have to be cross-examined so the court can test [the O'Donnell's claim that their business interests are primarily based in the UK]," he said.High court registrar Nicholls told the couple, a lawyer and a psychiatrist, there was no question that they were bankrupt, but warned them they would likely be forced to take the stand to defend their request to file for bankruptcy in the London. "They may have to be cross-examined so the court can test [the O'Donnell's claim that their business interests are primarily based in the UK]," he said.
Simeon Gilchrist, acting for the couple, said: "They have an office in London, they have a home in London which is sufficient for the bankruptcy petition to be heard in this jursidiction." Simeon Gilchrist, acting for the couple, said: "They have an office in London, they have a home in London, which is sufficient for the bankruptcy petition to be heard in this jursidiction."
The O'Donnells moved to London from a 9,000 sq ft family home near U2 frontman Bono's house in Gorse Hill on the south Dublin coast. The house, once valued at about €30m, features a swimming pool, tennis courts, gym and sauna.The O'Donnells moved to London from a 9,000 sq ft family home near U2 frontman Bono's house in Gorse Hill on the south Dublin coast. The house, once valued at about €30m, features a swimming pool, tennis courts, gym and sauna.
It was revealed in the Irish court battle that the couple, once listed the 178th richest in Ireland, have transferred the ownership of three properties worth an estimated €360m to their four adult children Blake, Bruce, Blaise and Alexandra.It was revealed in the Irish court battle that the couple, once listed the 178th richest in Ireland, have transferred the ownership of three properties worth an estimated €360m to their four adult children Blake, Bruce, Blaise and Alexandra.
The O'Donnells' property empire once stretched from from London to Washington DC and Stockholm. This year Morgan Stanley moved to seize a €165m Canary Wharf skyscraper from the couple. It is understood to have taken control of the tower, which houses its European headquarters, after refusing to refinance a loan that allowed the O'Donnells to buy the property. The O'Donnells' property empire once stretched from London to Washington DC and Stockholm. This year Morgan Stanley moved to seize a €165m Canary Wharf skyscraper from the couple. It is understood to have taken control of the tower, which houses its European headquarters, after refusing to refinance a loan that allowed the O'Donnells to buy the property.
The couple also own the Canary Wharf tower that houses Credit Suisse's European headquarters. The O'Donnells bought 17 Columbus Courtyard for about £120m in 2005.The couple also own the Canary Wharf tower that houses Credit Suisse's European headquarters. The O'Donnells bought 17 Columbus Courtyard for about £120m in 2005.
The pair also paid a record $172.5m for an office block a short distance from the White House, in Washington, which Vico Capital, another O'Donnell business, described as a "trophy class" building with "sweeping views of the White House, the monuments and the Potomac river".The pair also paid a record $172.5m for an office block a short distance from the White House, in Washington, which Vico Capital, another O'Donnell business, described as a "trophy class" building with "sweeping views of the White House, the monuments and the Potomac river".
Nicholls said a directions hearing for the case will be set for a date in late July or early August. Nicholls said a directions hearing for the case will be set for late July or early August.