Dáil Éireann Debate, Thursday - 28 February 2013
15. Deputy Barry Cowen asked the Minister for Finance his views regarding the implications of the liquidation of the Irish Bank Resolution Corporation for local suppliers of goods and services to the firm; the timetable he envisages for resolution of claims for payment by these firms; and if he will make a statement on the matter. [10600/13]
Amharc ar fhreagraNormal Companies Acts’ priorities must apply throughout this liquidation process. This means that the proceeds from the disposal of IBRC’s assets will be used to repay creditors in accordance with these priorities, and consequently preferred creditors will be paid first and then the secured debt which NAMA will have purchased from the Central Bank will be paid. If there are proceeds available after repayment in full of this debt, these proceeds will be applied to remaining unsecured creditors. Amounts owing by IBRC to contractors, trade creditors and other service providers are unsecured debts. It is not yet clear whether IBRC will have sufficient assets to repay unsecured creditors in whole or in part. The Special Liquidators have the power to come to arrangements with any creditor that is considered crucial to maintaining value or vital in providing services for the day-to-day operations of IBRC. Unless covered by the ELG scheme, bonds, guarantees or letters of credit rank equally with debts to contractors and other service providers as unsecured debt. Any creditors who have queries in relation to their status should contact the Special Liquidators.
