IBRC Liquidation

Thursday, 6 February 2014

Questions (54)

Lucinda Creighton

Question:

54. Deputy Lucinda Creighton asked the Minister for Finance further to Parliamentary Question No. 46 of 30 January 2014, if he is satisfied that no conflict of interest arises from the special liquidator KPMG managing the sales process of the Irish Bank Resolution Corporation loan (details supplied) and selling it to Kennedy Wilson which in 2013 acquired the Opera Finance CMBS portfolio that included KPMG’s Dublin office in the portfolio; if around the time of the disposal of the hotel IBRC loans from the special liquidator KPMG to Kennedy Wilson, KPMG was also negotiating on its head offices at Stokes Place on St. Stephen’s Green that was part of the Opera Finance CMBS portfolio; and if he will make a statement on the matter. [6123/14]

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Written answers

Minister for Finance

The Special Liquidators have a clear legal obligation to ensure that the best possible price is obtained for any loan or loan portfolio and have advised me that they are fully confident that they have delivered on this obligation and will continue to adhere to this obligation. The Special Liquidators are clear that the specific sales process the Deputy is referring to was transparent and run in a consistent and professional way and have advised me that the loan that is referred to was sold to Kennedy Wilson as that party submitted the highest bid. This approach to bidder selection is consistent with the approach adopted in the sale processes for all loan or loan portfolios of IBRC (In Special Liquidation).

While I do not receive details regarding individual transactions from the Special Liquidators it has been confirmed to me by the Special Liquidators that no conflict of interest has arisen in relation to the sale of the assets of IBRC (In Special Liquidation). I am satisfied that the Special Liquidators are conducting the liquidation of IBRC in a manner which is consistent with the IBRC Act and the Ministerial Instructions.