US court gives Killilea more time to provide assets to cover €19m judgment

The judge in the US bankruptcy case of Irish property developer Sean Dunne and his ex-wife Gayle Killilea has extended until March 4th the deadline for Ms Killilea to provide sufficient assets to cover a €19.4 million judgment while she considers an appeal. 

 

Ms Killilea was originally to provide the security by today. 

 

US district judge Jeffrey Meyer rejected Ms Killilea’s initial request for a month-long extension. But he pushed back the deadline to March 4th after her new lawyer in the case, Patrick Fahey, asked him to reconsider. The judge ruled during a hearing Wednesday in US district court in Connecticut. 

 

“We support the judge’s decision and we fully expect she will either comply with the order or there will be no stay [in paying the judgment] pending appeal,” bankruptcy trustee attorney Thomas Curran said. 

 

Mr Fahey and Ms Killilea did not respond to requests for comment. 

 

Mr Fahey, who took over as Ms Killilea’s lawyer after her long-time attorneys in the case withdrew over alleged nonpayment of legal fees, argued in a court filing that Ms Killilea should get more time because she was making a good faith effort to round up assets, including cash from South Africa. Ms Killilea also needs time to travel to Spain to secure additional money, Mr Fahey wrote. 

 

Cash security 

“As stated in Killilea’s motion, Killilea intends to provide additional cash security to the trustee and has taken additional steps to get that cash security into the hands of the trustee,” he wrote. 

 

In a rebuttal asking Judge Meyer to deny her request, bankruptcy trustee lawyer Peter Antonelli accused Ms Killilea of dragging her feet and giving insufficient information about the assets she says will provide the security. 

 

“Killilea argues that she needs more time to get access to money for reasons that she refuses to disclose,” Mr Antonelli wrote. 

 

In June 2019, a US jury found Mr Dunne had fraudulently transferred assets to Ms Killilea, his then spouse, to shield them from creditors and awarded the bankruptcy trustee €18.1 million. As of the beginning of this month, interest had increased the award to €19.4 million. 

 

In early February, Judge Meyer denied Ms Killilea’s request for a new trial. As she contemplates an appeal, he ordered her to turn over to the trustee sufficient assets, including proceeds from the sale of Ireland’s most expensive home, Walford, to pay the judgment. 

 

Mr Dunne has already asked a federal appeals court to order a new trial. 

 

The Irish Times