Oireachtas Joint and Select Committees

Thursday, 24 November 2016

Public Accounts Committee

Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed)

9:00 am

Mr. Brendan McDonagh:

As part of the closing of any large transaction, there is always a tail. We have told Cerberus that there was €2.8 million relating to sales of assets that, once the transaction closed and the bank accounts became Cerberus's rather than ours, went to Cerberus but that we should have had. There is provision for this in the loan sale agreement called a "wrong pockets" clause. Cerberus had indicated to us throughout that it would pursue a counterclaim against us for up to €20 million in respect of assets that we told it were there but that, when Cerberus looked for them, the security was not right. We resisted that. We are still in discussions with Cerberus. The latest position is that Cerberus has reduced its counterclaim from €20 million to €2.5 million and stated that it would give us €300,000. We have not acceded to that yet because we have been tied up in dealing with all of this. We will engage with Cerberus on the matter, but it is just a part of normal ongoing negotiations with counterparties.

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