IBRC Liquidation

Dáil Éireann Debate, Tuesday - 30 April 2013

Tuesday, 30 April 2013

Questions (156)

Gerry Adams

Question:

156. Deputy Gerry Adams asked the Minister for Finance if he has considered instructing the special liquidator of Irish Bank Resolution Corporation that the disposal of semi-State owned IBRC assets be managed under the same protocol that is in place for the sale of Bord Gáis Eireann’s energy business, ESB’s non-strategic power generation capacity, some assets of Coillte and the sale of the State’s remaining shareholding in Aer Lingus; if he has discussed with the Department of Public Expenditure and Reform the imposition of this protocol on the sale of IBRC assets which are nominally valued at more than three times the value of the total semi-State assets that are being sold under this semi-State sale process; and if he will make a statement on the matter. [19871/13]

Written answers

Minister for Finance

The liquidation of IBRC is similar to any other liquidation with the exception that the Special Liquidators have been appointed by the Minister under the Irish Bank Resolution Corporation Act 2013 rather than appointed by the Courts. As such the Special Liquidators are obliged to follow normal Companies Acts priorities throughout the liquidation process and act in a manner that ensures the assets of IBRC are managed in a way which maximises the overall return for all its creditors including the State subject to the provisions of the IBRC Act. While the matter was not formally discussed with the Department of Public Expenditure and Reform, it was not considered appropriate for the same protocol which is in place for semi-State assets to apply to the disposal of the IBRC assets as the Special Liquidator will only be holding the assets for a short period of time, the sale of those assets is guided in a specified manner and the State is a creditor of IBRC in the context of the liquidation as opposed to an owner of the assets.

As the Deputy is aware, the Special Liquidators are in the process of devising and implementing a valuation and sales process in respect of the assets of IBRC. Any assets that are not sold to third parties for a value higher than the independent valuations will be sold to NAMA at that price. Assets that are transferred to NAMA will be subject to the protocol according to the NAMA Act 2009.