Dáil Éireann Debate, Wednesday - 18 April 2012
94 Deputy Pearse Doherty asked the Minister for Finance the reason State owned IBRC agreed to write down the value of its loans to a company (details supplied) by more than €100m whilst at the same time ordinary shareholders were paid €4.96m as part of the deal to sell the company. [17684/12]
View answerNotwithstanding the State's ownership of the bank, IBRC operates at an arm's length capacity from the State in relation to commercial issues. It is a matter for the board and management to determine and implement such policy in their organisation. Therefore, commercial decisions in relation to IBRC are solely a decision for the bank. IBRC have informed me that KPMG Corporate Finance and Davy Corporate Finance ran a joint sales process to sell Siteserv which was in severe financial difficulties and was unable to service or pay back its loans to IBRC. The sale process was initiated by Siteserv and overseen by a subcommittee of the Siteserv Board. The sale process involved two stages and IBRC was briefed after each stage. The Board of Siteserv, as advised by KPMG Corporate Finance and Davy Corporate Finance, recommended the successful bid as representing the best return for IBRC. The Board of the bank are satisfied that this is the case.
