Mr. David Tynan of PwC was appointed to the role of Assessor pursuant to the Anglo Irish Bank Corporation Act 2009 in November 2018.
The Assessor's report was published on the Department of Finance website on 12 May 2020 and the overall conclusion of this report is that the fair and reasonable aggregate value of the transferred shares and the extinguished rights in the bank as at 15 January 2009 for the purposes of payment of fair and reasonable compensation for the acquisition of those shares and the extinction of those rights was nil and therefore, that no compensation is payable to former shareholders of any class or to former rights holders.
The Assessor was appointed pursuant to the Anglo Irish Bank Corporation Act 2009 (the "Act"). Under the Act the Assessor is required to determine this value having regard to the following items:
- on the basis of the true financial state of Anglo Irish Bank on 15 January 2009, taking into account the underlying market values of Anglo Irish Bank’s assets and the extent of its actual, contingent and prospective liabilities on that date;
- having regard to the rights attaching to each class of transferred shares; and
- assuming that no financial assistance, investment or guarantee (other than the guarantee already provided under the Credit Institutions (Financial Support) Act 2008) would in future be provided to or made in Anglo Irish Bank, directly or indirectly, by the State.
The final report of the Anglo Irish Bank Assessor states that, in his opinion, absent the provision of recapitalisation funds from the Government that the former Anglo Irish Bank was unlikely to be able to continue to trade as it was "both cashflow and balance sheet insolvent", as at 15 January 2009.
The Project Atlas October 2008 report, which PwC prepared, was based on Anglo’s IFRS balance sheet as at 30 September 2008 which was after the Government bank guarantee. The report stated that the balance sheet showed that the bank’s assets exceeded its liabilities.
I am aware of the recent media article but note that the work conducted by the Assessor cannot be compared to the reports undertaken by PwC under Project Atlas given the different dates involved and the fact the Assessor's report was conducted on the assumption of no further future support being provided to the bank (in line with the requirements of the Act).
In relation to Promissory Note payments the Deputy will be aware that the Promissory Notes were cancelled consequent to the liquidation of IBRC in 2013 and that no payments have been made on those notes since that time.