Business Irish

Tuesday 16 July 2019

Nama unit used to funnel Anglo cash to Central Bank liquidated

The Central Bank in Dublin
The Central Bank in Dublin
Donal O'Donovan

Donal O'Donovan

The state company that held the mortgage over the former Anglo Irish Bank after it was put into liquidation is being liquidated itself.

Papers filed with the Companies Office show that accountant George Maloney of Baker, Tilly, Glennon was appointed as liquidator of National Asset Resolution Limited on December 18.

The company was set up under the Nama umbrella in 2013, under orders from the Minister for Finance Michael Noonan, as part of the liquidation of Irish bank Resolution Corp, the renamed Anglo Irish Bank.

Under the terms of that liquidation National Asset Resolution Limited paid the Central Bank of Ireland €12.9bn - including €300,000 in cash and the balance in government guaranteed Nama bonds - in exchange for a charge or mortgage over the deeds of IBRC.

The €12.9bn was part of the consideration paid to the Central Bank for agreeing to undo the Anglo Irish Bank promissory note deal.

The Central Bank also received €25bn in long term government bonds, debts owed by taxpayers that will be repaid over 35 years.

The charge meant National Asset Resolution Limited was first in line to be repaid from the liquidation of IBRC assets as they were sold off by special liquidators Kieran Wallace and Eamonn Richardson of KPMG.

The Nama company in turn used the cash raised from the liquidation to redeem the bonds it had paid to the Central Bank.

If the special liquidators had failed to find buyers in the market for the IBRC assets National Asset Resolution Limited would have stepped in to take over and manage the loans, and taxpayers would have remained liable for any balance that was still owed to the Central Bank.

In the event, the liquidation raised more than the €12.9bn owed to the Nama unit which is now being placed into a solvent liquidation - meaning it has no outstanding debts that cannot be met. RTE reported this week that the Central Bank has sold €500m of the €25bn of bonds it received under the IBRC liquidation back to the state's National Treasury Management Agency.

Nama has also appointed a liquidator to a so called special purpose vehicle (SPV) called National Asset Leisure Holdings.

It is understood the "Leisure" SPV was used mainly for tax planning and financial administration in relation to assets including hotel loans for properties outside Ireland.

George Maloney of Baker, Tilly, Glennon has also been appointed liquidator of the solvent company, according to official filings.

Irish Independent

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