IBRC Liquidation

Dáil Éireann Debate, Tuesday - 16 April 2013

Tuesday, 16 April 2013

Questions (324)

Michael McGrath

Question:

324. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the process to be used by the special liquidator of Irish Bank Resolution Corporation in relation to the handling of individual debtor loan accounts; if the special liquidator is currently agreeing deals with debtors as part of the re-financing of certain loans; the procedure that will apply as regards the marketing of individual loans for sale on the open market; if individual debtors will be advised of the valuation that has been placed on their respective loans; when he expects the remaining unsold loans to be transferred to the National Asset Management Agency; and if he will make a statement on the matter. [17206/13]

Written answers

Minister for Finance

I have been advised that it is the intention of the Special Liquidators to package and sell the loan books as portfolios. The Special Liquidators are still in the process of devising and implementing the sales process in respect of IBRC’s assets and are therefore not in a position to write to borrowers with regards the disposal of their loans. There is an obligation on the Special Liquidators to ensure that maximum value is extracted from the loan sales process and they are currently devising a process to ensure they meet this obligation. The Special Liquidators are in the process of obtaining suitable independent professional advisors who shall employ standard valuation methodologies appropriate to each class of asset of IBRC. In order to ensure that maximum value is extracted through the liquidation process the Special Liquidators are required to keep confidential the valuation of these assets.

Following that independent valuation process, the Special Liquidators will sell the assets of IBRC (which are subject to the floating charge) in an open and transparent process at or above their independent valuation and failing that, the Special Liquidators will sell the assets to NAMA at their valuation price.

As the valuation and sales process is still being devised and implemented, the Deputy will appreciate that it is not possible to be specific in relation to the time horizon for the disposal of IBRC assets.