Thursday 19 October 2017

IBRC creditors urged to make their case to former bank's liquidators

Finance Minister Michael Noonan has confirmed that a total of 6,500 home loans were not sold as part of a deal to offload IBRC mortgages
Finance Minister Michael Noonan has confirmed that a total of 6,500 home loans were not sold as part of a deal to offload IBRC mortgages
Donal O'Donovan

Donal O'Donovan

Creditors who believe they should be at the front of the queue to be repaid by the liquidators of IBRC have been told to contact the former bank with written details of their claim.

The state-appointed special liquidators of Irish Bank Resolution Corp (IBRC) placed a notice in the Irish Independent inviting preferential creditors to contact them detailing their claim for repayment.

Preferential creditors are those whose debts are legally in line to be repaid first from the proceeds of a liquidation.

That typically includes the Revenue Commissioners and staff, but in practise a lender with a "charge" or mortgage over the assets of a business is also at the top of the queue for a payout.

In the case of IBRC, the state-owned National Asset Management Agency (NAMA) holds a charge over the bank's assets. This was handed to the agency by the Central Bank in exchange for €12.9m as part of the state-orchestrated liquidation in February.

That charge means NAMA is likely to receive all or most of the proceeds from a sale of IBRC assets. Those considering submitting a claim have been told that they may be required to sign legal affidavits as part of the process.

It is the second time that creditors have been asked to provide details of debts that they are owed.

In February, when the special liquidators were first appointed, they wrote to businesses that had worked for IBRC asking them to provide detailed claims for money they were owed by the bank. Those replies were due by April 30, 2013.

Irish Independent

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