Interpath Advisory Ireland’s Kieran Wallace, the liquidator of the stockbrokers, is asking the court to approve the offers and to allow him to cease taking further steps to secure contributions from them and from others who were partners in the business when it collapsed in 2012.
Mr Wallace has told Justice Brian O’Moore that four of the Bloxham partners do not have funds to contribute to the liabilities, while a fifth, Raymond Deasy, a former partner in institutional equities, has been uncontactable for the last eight years.
The Central Bank directed Bloxham to cease trading in May 2012 after discovering “financial irregularities’’.
The oldest and third-largest broking firm in the State had a €5.3m hole in its accounts.
In a sworn statement in support of his most recent application, Mr Wallace said he called on all of the partners in October 2021 to contribute to the €16.7m cost of winding up Bloxham.
Significant engagement has occurred since then and he is satisfied Patrick Finnegan, former head of private clients, Peter Costigan, former head of institutional bonds, Niall Tinney, former head of asset management, and Tadhg Gunnell, former financial and compliance partner, do not have sufficient assets to contribute to the liabilities.
Mr Gunnell, who was suspended in the wake of the collapse, was adjudicated bankrupt in 2015.
Mr Ghose, Bloxham’s former managing partner, initially offered to pay €85,000 towards the partnership’s debts but later agreed to pay €150,000, the court heard. Mr Wallace said he is satisfied with the higher offer, which is “reasonable” in light of Mr Ghose’s financial circumstances.
The liquidator determined that Mr Dempsey, the former head of institutional equities, could contribute to the liquidation with assets he held in a partner account with Davy Stockbrokers.
Mr Dempsey transferred €361,000 to the liquidation bank account in mid-2022 and a further €14,500 in early 2023, said Mr Wallace.
The liquidator had some concerns about Mr Dempsey’s statement of affairs and arranged a meeting with him.
After this, Mr Dempsey’s wife, Clodagh Hughes, offered to contribute €30,000 to Bloxham’s debts on her husband’s behalf. Mr Wallace said he was satisfied the amount was reasonable.
Mr Wallace’s counsel, David Whelan, brought the application before the court yesterday.
Mr Justice O’Moore queried what he said could be kindly described as an “inconsistency” in Mr Dempsey’s statement of affairs. Gary McCarthy SC, for Mr Dempsey, said a “fair and reasonable” €45,000 sum was being offered by his client, which included the €30,000 amount from Ms Hughes.
Mr McCarthy said his client has cooperated with the liquidator and has already contributed a “very considerable” €1.25m to reducing the deficit.
This is also “not the end of the road” for Mr Dempsey’s dealings with these matters, as two continuing court actions will result in him facing further calls from parties, Mr McCarthy added.
The judge directed various parties to file further sworn statements ahead of the hearing of Mr Wallace’s application seeking to be allowed to take no further steps to seek contributions to the Bloxham liabilities.
Barrister Keith Farry, for Mr Costigan, told the court he wants to submit an affidavit to verify the contents of a recent letter and a property valuation.
Mr Justice O’Moore adjourned the application, which he expects to hear in the autumn.