Friday 17 November 2017

Liquidation sale of IBRC assets brings in €425m for NAMA

Joe Brennan and  Donal O'Donovan

Liquidators of IBRC have so far recouped €425m for NAMA, the agency that holds a charge or mortgage over the assets of the former state-owned bank.

In February, NAMA paid €12.9bn to the Central Bank to buy out the lender's charge over the assets of IBRC as part of the complicated deal to cancel the notorious Anglo promissory note. IBRC was originally created from a merger of the former Anglo and Irish Nationwide Building Society (INBS).

The charge means NAMA is first in line for the proceeds of selling off IBRC's assets.

Those assets are mainly loans, which have a 'par' or face value of €22bn but are expected to be sold at a steep discount as part of the liquidation of the former bank. So far the State's bad bank has recouped €425m from that liquidation sale, according to new data on the Department of Finance website.

The Government ordered NAMA to buy out the Central Bank's charge over the assets under a deal that settled emergency loans the bank made to Anglo during the height of the banking crisis.

PROCEEDS

The figure paid off to date includes proceeds of asset sales and other receipts, a NAMA spokesman said.

The Government appointed special liquidators from KPMG to take over IBRC in February to speed up the wind-down of the bank as part of a wider deal to restructure the €31bn promissory note that was used in the original bailout of the former Anglo Irish Bank.

KPMG is now in the process of selling most of the bank's loans, which are being disposed of in four batches.

It includes about 8,000 corporate loans and twice as many mortgages. The plan is to close that sale process by the end of the year. Any loans not sold to investors by that point will end up being transferred to NAMA on foot of its charge over the assets.

In theory, if liquidators realise more from the sell-off than the debt owed to the agency any extra cash will be shared among the other creditors of IBRC.

However, the expectation is that a large share of the IBRC loan book is heading for NAMA.

It will be reimbursed by the Government if the loans are valued independently at less than its €12.9bn initial outlay.

Irish Independent

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