Dáil Éireann Debate, Wednesday - 24 April 2013
80. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question Nos. 275, 276, 277 and 278 of 16 April, 2013, the reason preferred creditors will be paid before debt purchased by the National Assets Management Agency from the Central Bank; and if he will make a statement on the matter. [19462/13]
View answerI have been advised by the Special Liquidators that the debt purchased by NAMA from the Central Bank is a claim debt secured by a floating charge over the assets of IBRC. The sales proceeds received through the sale of the Company’s assets will be used to repay the creditors of the Company subject to the normal legal priorities, as set out in the Companies Act’s. Once the costs of the liquidation have been paid payments will be made to those creditors who are classified as preferential creditors.
Section 285(7) of the Companies Act, 1936 (as amended) (“the Act”) provides that preferential debts shall “have priority over the claims of holders of debentures under any floating charge created by the company, and be paid accordingly out of any property comprised in or subject to that charge”.
