Wednesday 17 July 2019

Anglo Irish liquidation costs €60m but leaves €1.8bn for unsecured creditors

Anglo Irish Bank was renationalised before being wound up
Anglo Irish Bank was renationalised before being wound up
John Mulligan

John Mulligan

The liquidation of the former Anglo Irish Bank has so far cost €60m, but €1.1bn in costs would have been incurred under a previous plan to wind down the business by 2020, according to the liquidators.

A progress report delivered to Minister for Finance Michael Noonan from the special liquidators for Irish Bank Resolution Corporation (IBRC) points out that while the liquidation costs have reached €60.6m since February 2013, €41.4m in operational savings have been made during that time.

The report also reveals that IBRC has been left with net cash of €1.85bn following the sale of €21.7bn worth of loans since December 2013.

Those sales have resulted in a €16.5bn cash in-flow to IBRC.

The €1.8bn surplus cash will enable IBRC to make payments to unsecured creditors, probably near the end of 2015.

"Creditors in the UK and Ireland, including various local authorities and credit unions, have until the March 31 to submit their claims," said Mr Noonan. The claims are likely to be for a total of about €50m.

Mr Noonan described it as a "great result" compared to where IBRC was at the beginning of 2013.

IBRC has €3.6bn in loans that it's continuing to manage.

That loan book contains what IBRC described as a "small number of connections" which remain with the bank "primarily due to on-going litigation proceedings".

However, those loans could also be eventually liquidated or sold off.

Irish Independent

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