Sunday 28 May 2017

IBRC liquidators will make payout to creditors, including the State, in next two weeks

By my reckoning, Cerberus made about £168m on Project Eagle in 2015. On that, they paid just under £1,600 in tax. That's a tax rate of 0.001pc. Photo: Reuters
By my reckoning, Cerberus made about £168m on Project Eagle in 2015. On that, they paid just under £1,600 in tax. That's a tax rate of 0.001pc. Photo: Reuters
Donal O'Donovan

Donal O'Donovan

The liquidators of IBRC will make a payout to creditors, including the State, in the next two weeks, worth 25pc of what is owned.

The biggest payment of around €275m will be to taxpayers, others in line to claw something back include ordinary trade creditors left out of pocket when the bank was placed into liquidation in February 2013.

So called junior bondholders, who refused to take a smaller payout when most of their peers were “burned” when IBRC tried to reduce to the total bill for taxpayers, are not in line for the current payout. 

The payment will be the first interim dividend paid to unsecured creditors of Irish Bank Resolution Corporation Limited (In Special Liquidation), since it was placed into liquidation.

The Joint Special Liquidators of Irish Bank Resolution Corporation Limited (In Special Liquidation), Mr. Kieran Wallace and Mr. Eamonn Richardson of KPMG Dublin said earlier this year that around €2.2bn had been raised from the sale of the bank’s loans. Junior bondholders will only be paid once all other classes unsecured creditor are paid in full. That includes the State which has to be reimbursed for €1.1bn that was paid out to IBRC customers under the depositor guarantee scheme, set up to ensure savers are not left out of pocket when a bank collapses.

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