Thursday 26 April 2018

IBRC liquidators seek permission to sell €7bn of loans

Deutsche Bank gave a valuation of £2.9bn (€3.68bn)
Deutsche Bank gave a valuation of £2.9bn (€3.68bn)
Goldman Sachs Group headquarters in New York
John Mulligan

John Mulligan

The liquidators of Irish Bank Resolution Corporation (IBRC) have sought permission from a US bankruptcy court to sell as much as €7bn of loans to firms including Deutsche Bank, Lone Star and Goldman Sachs.

The special liquidators – Kieran Wallace and Eamonn Richardson – have applied to sell the loans held by a large number of Irish and US borrowers. The loans are largely connected to a raft of property and other investments made in the United States, or where collateral in the US was provided for a loan.

The liquidators need to apply for permission from the court under US bankruptcy laws. IBRC was granted bankruptcy protection in the US in December after a protracted legal battle. Some creditors of the bank there had opposed the failed lender being granted US court protection.

IBRC liquidators have requested a hearing on May 13. Objections to the planned sales need to be lodged with the court by May 6.

The bank has indicated that it's selling four lots of US-connected loans: Stone US Loans; Rock US Loans; Sand US Loans; and Pebble US Loans.

It said the 'Stone' element of US loans comprise approximately 4,516 loans made to about 2,560 corporate entities and individuals. IBRC has also filed a publicly available list of all the borrowers affected by its planned US loan sales.

The liquidators have told the court that the nominal gross loan balance of the Stone US Loans is approximately €6.2bn.

"The purchasers include affiliates of leading private equity firms and investment fund managers that invest globally . . . and affiliates of well-known global financial institutions such as Deutsche Bank and Goldman Sachs," the US court has been told.

Among the Stone US Loan borrowers is a company called Galway Clinic Doughsika, where beef baron Larry Goodman is a part-owner. Other borrowers in the US loan portfolio include Fleming Capital, the company formerly known as Boundary Capital. The firm is now in receivership.

Other borrowers revealed in court filings include O'Buachalla Holdings, a company whose directors are Oisin O'Buachalla and Robert Mooney. Mr O'Buachalla is a well-known Dublin businessman.

The nominal gross loan balance of the total 'Rock' loan portfolio is approximately £4.8bn (€5.8bn), according to the liquidators. But that includes loans made to borrowers in the UK and Northern Ireland, who are not part of the US loan sales process. The precise gross loan balance of the 'Rock' portfolio that is attributed to US assets isn't disclosed.

IBRC liquidators said the nominal gross loan balance of the total 'Sand' loan portfolio is about €1.8bn. Again, the amount that relates to US-related loans isn't revealed.

The purchasers of the IBRC US loans have already been required by liquidators to pay a 10pc deposit after completing deeds of purchase.

Irish Independent

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