Joanna Tuffy (Dublin Mid West, Labour)
Link to this: Individually | In context

Question 207: To ask the Minister for Finance if the National Assets Management Agency takes into account, in its dealings with developers and builders, the situation regarding creditors of those builders and developers and the need for those creditors to be paid for services and goods provided to the developers and builders concerned; and if he will make a statement on the matter. [29685/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I am informed by NAMA that all cases are managed to realise the maximum return to the taxpayer. This is typically achieved through agreeing a course of action with the debtor referred to as a consensual arrangement. Prior to reaching a consensual arrangement with debtors cases are managed based on their individual circumstances with a view to achieving a maximum return to the taxpayer which may include providing the debtor with temporary support so as to give NAMA an opportunity to assess the scope for reaching long-term agreements with them. Very often that involves meeting their short-term liabilities so that they can remain in business.

In reaching a consensual arrangement with a debtor all creditor claims, both secured and unsecured are assessed on a case by case basis. Once the overall consensual arrangement has been agreed with the debtor the day to day implementation of that arrangement is managed directly by the debtor including the daily interaction with unsecured creditors. In cases where the process does not lead to a consensual arrangement with a debtor, enforcement is initiated. In those circumstances, an insolvency practitioner appointed by NAMA is required only to realise the value of NAMA's fixed or floating charges over assets. Understandably, he is not under any obligation to unsecured creditors. In an insolvency situation the ultimate outcome for all creditors will depend on the nature and ranking of their charges.