An unprecedented sell-off of loans relating to some of the country's richest businessmen and best-known companies will begin on July 1.
Among the big borrowings expected to be bought out during the fire sale before entering NAMA are performing loans of hundreds of millions of euro owed by property investor Paddy McKillen, Davy Stockbrokers (the country's biggest brokerage) and billionaire Denis O'Brien and his companies.
Sizeable loans related to the Whitfield Hospital in Waterford, McCabe Pharmacies, Topaz and staff who own a chunk of Aer Lingus will also all be impacted.
The sell-off will also see high-profile smaller borrowers from Anglo or Irish Nationwide, including politicians Michael Lowry and Phil Hogan and broadcaster Gay Byrne, impacted as their property loans are either flogged off in the weeks after July or go into Nama.
KPMG will by July 1 have placed a value on every loan in both banks and will offer them to the market.
This will trigger huge corporate activity involving the bank's biggest borrowers who will have to refinance their loans themselves or see them sold on to private equity houses, sovereign wealth funds and investment banks. IBRC has a loan book of €14bn.
If either the borrower or another market bidder fails to reach the price set by KPMG for their loans, they will then pass into the control of the National Asset Management Agency.
IBRC's previous management had already packaged some of its bigger loans for sale, including €2bn worth – codenamed Project Delta – relating to cash flow businesses. It has also put various property syndicate-related loans on the market. However, these sales are expected to be delayed until KPMG has a chance to assess them.
IBRC's old management are in the process of selling down their remaining €1bn American loan book, of which they sold €600m in the past year at a price of €100m more than previously offered two years ago as property markets there recover.
The special liquidator will continue all legacy cases initiated by IBRC. These include matters relating to former executives of Anglo Irish Bank as well as to former senior figures in Irish Nationwide.
IBRC is currently embroiled in a number of complicated legal actions including various cases relating to the family of Sean Quinn in multi-jurisdictions.
The special liquidator is expected to ask key individuals in the bank to stay on in a full or part-time capacity to work on these matters.