The Special Liquidators expect that the proceeds raised from the sale of IBRC assets to be sufficient to fully repay the IBRC debt to NAMA (previously the Central Bank of Ireland). NAMA acquired €12.9bn of senior debt in February 2013 as part of the Promissory Note transaction, following repayments by the Special Liquidators this has been reduced to €0.1bn at the end August 2014 and is expected to be fully repaid by the end of the year. As a result, NAMA will not now be obliged to purchase unsold IBRC assets at their independent valuation as previously envisaged.
The Special Liquidators are devising and managing a further sales process in respect of the unsold assets in a manner that maximises the return to all remaining creditors of IBRC, including the State. A revaluation process of the unsold assets, using standard valuation methodologies appropriate to each class of asset, is in the process of being completed by independent professional advisors.
Over the last number of months the Special Liquidators corresponded with all remaining borrowers of IBRC providing them with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets. Consideration has been given to these borrower representations and the Special Liquidators are in the process of responding to these borrower representations.
The Special Liquidators expect the sales process for the majority of the loan assets to be completed before 31 December 2014.
