Anglo will not appeal €40m loan valuation
Published 11/11/2010 | 05:00
ANGLO Irish Bank has no plans to appeal the €40m valuation the National Asset Management Agency put on a loan that ultimately generated €180m, the Irish Independent has learned.
Under the NAMA legislation, banks have the right to appeal the value attached to a loan by the agency.
Some observers had expected Anglo to use this right of appeal in this case, since its loan netted a €140m windfall for the State's bad bank.
However, sources close to Anglo dismissed the suggestion, saying the bank had "not considered" appealing the controversial valuation.
The bank is understood to be conscious that such an appeal would be a nil-sum game for the taxpayer, since both Anglo and NAMA are state-owned. The €140m profit on the Anglo loan marks the first major windfall for NAMA.
The transaction is believed to involve a loan backed by a London car park linked to financier Derek Quinlan.
NAMA is believed to have secured the bumper price for the property by selling to a Middle-Eastern investor, who also owns adjoining sites.
It also had the benefit of holding a bundle of Mr Quinlan's loans, so any money yielded from the car park must be offset against the entire loan portfolio.