Sunday 25 September 2016

€190m: eye-watering price tag for liquidation of Anglo

Published 28/05/2016 | 02:30

Kieran Wallace (pictured) and Eamonn Richardson published the latest progress report on the liquidation
Kieran Wallace (pictured) and Eamonn Richardson published the latest progress report on the liquidation

Fees incurred by the State as a result of the special liquidation of the former Anglo Irish Bank have hit almost €190m.

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Some €187.5m in fees have been raked up since the Irish Bank Resolution Corporation (IBRC) was put into liquidation in February 2013, but around €8m of that has been returned to the State by way of rebates, according to the latest progress report on the liquidation published yesterday by Kieran Wallace and Eamonn Richardson.

Last year alone, €24.5m in fees were accumulated.

The report also shows that the State is expected to get paid €275m by the end of this year as a result of an interim dividend of 25pc which is due to be paid to unsecured creditors.

Some €1.1bn overall is owed to the State for money paid out to IBRC customers whose savings were guaranteed by the State at the time of the liquidation.

Unsecured creditors also include dozens of businesses whose bills to the bank were outstanding when the plug was pulled on the institution.

Unsecured subordinated, or junior, bondholders are then next in line to get paid, but the report says this will not happen.

“It is anticipated that a dividend will be available for unsecured (but not subordinated) creditors but it is difficult to ascertain the quantum at this stage as the outcome of certain claims have yet to be determined,” the report said

Around €35bn was pumped by the State into Anglo and Irish Nationwide, but the vast majority of that money is now lost. The Government is confident of getting back its investments into AIB and Bank of Ireland, however.

Irish Independent

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