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Monday 5 December 2016

O'Brien campaigned to get his €315m IBRC loan extended

Daniel McConnell Group Political Correspondent

Published 10/06/2015 | 02:30

Denis O'Brien
Denis O'Brien

Businessman Denis O'Brien made four attempts to extend a loan with the former Anglo Irish Bank and eventually got an extra 12 months to make repayments on €315m he had borrowed, the Dáil heard last night.

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However, the claim was disputed by the special liquidators for IBRC, which said the the information put on the Dáil record concerning the alleged extension of credit facilities was inaccurate and misleading.

A range of issues about Mr O'Brien's banking arrangements with the IBRC were put on the Dáil record by Sinn Féin finance spokesman Pearse Doherty in a debate on the Commission of Investigation into various transactions, including the sale of Siteserv to Mr O'Brien's Millington company.

Mr O'Brien met a case team from the bank and said he had a "verbal agreement" with IBRC former CEO Mike Aynsley and senior executive Richard Woodhouse.

He wrote to IBRC in March 2013 requesting that he be able to repay his loans over a three-year period.

However, the bank's credit committee said the loan could only be extended by 12 months.

According to Mr Doherty's documents, Mr O'Brien requested a further extension with no capital repayments in April 2013 but received a "de facto second rejection".

The Sinn Féin TD said Mr O'Brien faced the possibility of having his loan sold to a third party with no facility.

Mr O'Brien's other proposals were rejected, and the loan expired with no new agreement in place.

"The individual made a fourth proposal to IBRC on October 10, 2013, for a 12-month extension with no capital repayments, which was, according to the document I have, it was approved on the November 14, 2013," he said.

This was for a loan of in excess of €315m with a margin interest rate of 3pc, amounting to €10m per annum, he said.

Mr Doherty then asked: "How does a bank in liquidation create what is essentially a new €315m loan which its group credit committee had rejected just a number of months earlier?"

Irish Independent

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