There is an obligation on the Special Liquidators to ensure that maximum value is extracted from the loan sales process for the benefit of all the creditors of IBRC including the State.
The Special Liquidators appointed PwC as independent advisors to value the residential mortgage portfolio. PwC were also appointed to provide independent advice in developing a robust and credible sales strategy for the sale of the residential mortgage portfolio. Following the representations received from borrowers and the independent advice provided by PwC, the Special Liquidators decided that the residential mortgage portfolio be sub-divided into four portfolio tranches with a view to maximising market interest and return within the timelines set out in the Ministerial Instructions. I am informed by the Special Liquidators that they are confident that this process will deliver the maximum value from the sale of the residential mortgage portfolio and thus maximise the return for the creditors of IBRC.
I have been advised by the Special Liquidators that they did consider the concept of offering individual mortgages for sale. A number of issues impacted on this decision including cost, timing, independent professional advice received, the impact of borrower only bids, the confidentiality of personal information, execution risk and delivering the best results for creditors of the bank.
It is not possible for me to interfere in the sales process developed by the Special Liquidators as to do so could leave me open to challenge by other creditors of the bank.
