Dáil Éireann Debate, Thursday - 7 July 2011
70 Deputy Michael McCarthy asked the Minister for Finance if he will outline the role that the National Asset Management Agency has once it has taken over a company and acquired its assets in terms of the discharge and management of debts that the company had prior to its take-over by the agency; and if he will make a statement on the matter. [19338/11]
View answerNAMA has a commercial remit to manage its portfolio of acquired loans and property to generate the best achievable financial return for the State. To date NAMA, has only acquired loans not properties or companies. Following the transfer of a debtor's loans to NAMA, each debtor is requested to complete a realistic and concise business plan. The viability of the business plan of each major borrower is then assessed by NAMA. Where viability cannot be demonstrated or where a borrower is not co-operating with the process NAMA will take enforcement action against the borrower concerned.
As at end-May 2011, NAMA has approved the appointment of receivers in 66 cases. On appointment it is then the receiver's primary role to recover the money owing to the creditors. The receiver is the agent of the debtor but acts on NAMA's instructions. Each receivership proceeds on a case-by case basis in order to maximise the recoverable proceeds from a debtor's assets. In order to do this the receiver may continue to manage the business and/or sell or realise the debtor's assets.
