Business Irish

Saturday 20 September 2014

Anglo's 'statement of affairs' will not name former clients

Published 24/09/2013 | 05:00

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Finance Minister Michael Noonan outside the Department of Finance

ANGLO Irish Bank's borrowers and depositors will not be named in a final "statement of affairs" for the liquidated bank due to be finalised this week.

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Finance Minister Michael Noonan has intervened to block the names of individual depositors who had an account with IBRC, the renamed Anglo Irish Bank, appearing on its statement of affairs.

Instead, it is intended that a single figure recording the total value of deposits on the day the bank was liquidated will appear on the documents.

Mr Noonan has also ruled that individual borrowers would not be named on the document.

Guide

All companies that go into liquidation must produce a "statement of affairs" setting out in full the details of all debts and assets of the company, including details of any money owed and who it is owed to, or owed by.

It is usually prepared within weeks of a company's collapse by the outgoing company directors, and sets down their understanding of the financial position of the company immediately prior to liquidation.

It is regarded as a useful guide for creditors to their chances of recouping any debts owed in a liquidation.

The document is not usually made public, but is circulated to those financially affected by the liquidation and filed with the High Court.

The statement of affairs for IBRC is due to be finalised by September 30.

The controversy surrounding the slow collapse of Anglo, and the rush to liquidate the bank last February, means its statement of affairs has been hotly anticipated – in particular by anyone who believes they are owed money by the bank, or have a legal claim against it.

Depositors will not be named in the paper after Mr Noonan issued a special order explicitly ruling out their details appearing in the document.

The order known as Statutory Instrument No 358 2013 was published in the official state gazette 'Iris Oifiguil' last Friday.

It is the third time Mr Noonan has intervened in the preparation of the controversial "statement of affairs" for the bust bank.

In July he gave former directors, including Mike Aynsley and Alan Dukes, an extra seven months to prepare the document. Directors of a bust business normally have just three weeks to produce the document.

In August, Mr Noonan issued a Statutory Instrument which has the effect that no information relating to individual borrowers will be included in the statement.

Instead, a single figure setting out the total net book value of customer loans will be disclosed, together with the directors' assessment of the amount they believed was capable of being realised, as at the date of the statement of affairs, a spokesman for Mr Noonan said.

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