IBRC liquidators to pay State €275m

The liquidators of Irish Bank Resolution Corporation intend to make a interim payment to unsecured creditors this year, which will involve the State receiving a cheque for about €275 million.

This has emerged in the liquidators third progress update report, published today.

Their expectation is that the eventual unsecured creditor dividend will be in the range of 75 to 100 per cent of all eligible claims. The State’s claim is €1.1 billion.

Commenting on the report, the Minister for Finance Michael Noonan

said: “The success of the liquidation to date has resulted in a cash balance on hand of €2.23 billion.

“The special liquidators inform me that they hope to be in a position to make an interim distribution by December 31st 2016 of 25 per cent of all admitted claims made by unsecured creditors.”

He said the eventual dividend range would be subject to change depending on future events.

“The ultimate level of dividend paid to each creditor cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and the other contingent creditor claims which may crystallise, including those from litigation, are known,” the minister said.

The report by Kieran Wallace and Eamonn Richardson of KPMG highlights that all potential unsecured creditors need to have their claims submitted and adjudicated on prior to the date of the first interim payment.

The report shows that more than 350 legal cases remain to be cleared.

This number is down from about 700 in March 2015

Mr Noonan said he was “satisfied” with the financial outcome of the liquidation to date, which has “far exceeded” his expectations and has not resulted in “any further cost to the Irish taxpayer”.

IBRC comprises most of the former Anglo Irish Bank and Irish Nationwide Building Society. It was liquidated by the State in February 2013.

This report was requested by the minister following discussions over the past few months and will be referred to the Oireachtas committee on finance, public expenditure and reform for their consideration.