I am aware of the problems facing local authorities and in particular in relation to unfinished housing estates as a result of developers not complying with the terms of their planning permissions. I am advised that development bonds previously entered into by IBRC in favour of the various County Councils or local authorities remain in place however it is likely that any liabilities arising under these arrangements, if called upon, will rank as unsecured claims in the special liquidation.
I am advised that the Department of the Environment, Community and Local Government are currently working with the relevant local authorities to ascertain the actual level of exposure that exists in relation to the development bonds previously entered into by IBRC in favour of the various County Councils or local authorities. Once that exposure is quantified the local authorities will submit a claim to the Special Liquidators in respect of the bonds. This information will be provided directly to the Special Liquidators in order to allow them to register that claim on the liquidation of IBRC.
