Overcharged Anglo Irish Bank customers to be contacted
Fees for liquidators and lawyers involved in the winding- down of IBRC, the former Anglo Irish Bank, were €215m in the 47 months to the end of last year.
The biggest fees, around €130m, were paid to KPMG, where the IBRC special liquidators, Kieran Wallace and Eamonn Richardson, are partners, according to an update on the liquidation which was released yesterday.
The fees were also shared by law firms including Linklaters, Arthur Cox, and Maples and Calder, financial services giants PwC and Deloitte and property advisers Savills and Eastdil.
The update also says around 6,500 former business customers of the bank in Ireland who were overcharged interest by their lender will begin receiving cheques within months.
An additional almost 600 US customers were affected.
The payouts are due on foot of a legal action taken by businessman John Morrissey against IBRC, when the High Court found that interest for some borrowers was incorrectly calculated by the lender resulting in an extra five days a year of interest being charged.
Some loans linked to the borrowers affected ended up in Nama, increasing the complexity of the remediation process, liquidators said.
The updated report shows IBRC has a remaining loan book of €3.7bn, which is yet to be sold off.
The liquidators were also sitting on more than €1.9bn of cash at the end of February, which is yet to be distributed to creditors.
Last year 25pc of cash owed was repaid in an interim settlement, and creditors have been told that between 75pc and 100pc of the balance owed is likely to be met.
Those creditors include the State and junior bond holders, owed around €285m who resisted being "burned" after the bank was nationalised.
All will have to wait years for their claims to be settled - in part because of legal cases working their way through the courts, according to the update.
IBRC is a defendant in 143 legal cases, including those linked to the family of Sean Quinn, once Anglo Irish Bank's biggest shareholder as well as a major debtor, though the scale of the loans is disputed.
In the update for the Minister for Finance, the liquidators said they've handed over all documents requested by a Commission of Inquiry, set up to look into the sale by IBRC of industrial services group Siteserv and other transactions.
The Commission has been tasked with investigating all transactions that resulted in losses greater than €10m after Anglo's nationalisation. It was set up in 2015.
The €45m sale to businessman Denis O'Brien resulted in a write-off of more than €100m of Siteserv's boom-era debt.
Liquidators said that more than 220 million files within IBRC were searched for any data that could be provided to the Commission.
Management and legal costs associated with the work totalled around €700,000.
The IBRC liquidators said that based on their current understanding, they don't envisage significant future work in relation to the Commission.