Dáil Éireann Debate, Wednesday - 22 May 2013
72. Deputy Pearse Doherty asked the Minister for Finance if he will estimate the total debt write down that will be given to developers who bid for their own loans from the Irish Bank Resolution Corporation at substantially reduced values; and if the residual debt against those developers will be pursued by the State. [24689/13]
View answerI have been advised by the Special Liquidators that they have engaged specialist advisors who are to provide advice as to whether a loan should be sold individually or as part of a portfolio in order to ensure that the maximum value is obtained for that asset within the instructed timeframe. The decision concerning how the loans will be packaged for sale is to be made by the Special Liquidators. Based on current information, it is envisaged that the majority of loans will be sold as part of portfolios. The Relevant Loan Assets (as part of a portfolio or as an individual loan whichever the case may be) will be put to the market and third parties will be given the opportunity to bid for these portfolios/individual loans as part of an open and transparent sales process. Borrowers and third party bidders may be permitted to bid for portfolios/loans. However, it is a matter for the Special Liquidators to determine what bidders constitute qualifying bidders for the purposes of the sales process.
I have been informed by the Special Liquidators that there will be no write down in debt for Borrowers. The Special Liquidators will be selling the Relevant Loan Assets for an amount equal to or in excess of the independent valuation obtained. The gross amount outstanding on the loan will still be due and payable in full to the owner of the relevant loans asset(s).
