Business

Friday 22 August 2014

Massive batch of mortgages sold by liquidators for IBRC

Sarah McCabe

Published 01/04/2014 | 16:32

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About two thirds of the mortgages, most of which were originally issued by Irish Nationwide and have a combined par value of €1.8bn.

A MASSIVE batch of mortgages has been sold by the liquidators for IBRC.

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About two thirds of the mortgages, most of which were originally issued by Irish Nationwide and have a combined par value of €1.8bn, have been sold to international investment funds Lone Star and Oaktree Capital Management.

About half of these mortgages are in arrears.

The new buyers have agreed to voluntarily comply with the Central Bank’s Code of Conduct on Mortgage Arrears.

Concerns had previously been raised that the sale of the mortgages would result in the loss of this consumer protection safety net for borrowers.

About 85pc of another batch of IBRC loans nicknamed Project Stone has also been sold, KPMG’s Kieran Wallace and Eamonn Richardson, the special liquidators for IBRC, said today.

Project Stone is a portfolio of mostly Irish commercial real estate loans with a par value of around €9.3bn.

The main buyers involved are Deutsche Bank, Lone Star, CarVal Investors and Goldman Sachs. A number of other parties have also bought loans connected to single borrowers, the liquidator said – suggesting some developers have bought back their own loans.

Nine tenths of IBRC loans have now been sold.

“The sales process for the IBRC loans, including their segmentation to meet demand from international buyers, has delivered a very positive result with over 90 per cent of IBRC’s loan assets now sold within 14 months of the Bank’s liquidation. The response of markets to the liquidation and sales process has exceeded our expectations” said KPMG.

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