Written answers

Tuesday, 23 April 2013

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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217. To ask the Minister for Finance if he will outline the safeguards which exist to prevent the special liquidator at Irish Bank Resolution Corporation from being subjected to improper influence from any quarter including borrowers or Government Departments, in his duties to maximize the value of IBRC assets. [18472/13]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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The Special Liquidators have been appointed for the purposes set out in the IBRC Act 2013 and are subject to the duties and obligations set out in that legislation. In addition the Special Liquidators are also subject to the restrictions and obligations as set out in the Special Liquidators engagement. As accountants, appointed as Special Liquidators, normal professional standards apply to all conduct. Independent third parties are being engaged to value the loan assets of IBRC (in Special Liquidation). The appointment of independent third parties ensures that the valuation and sales process is managed without improper influence or conflict of interest. Should a bid not be received that is equal to or in excess of the independent valuation obtained, the loan will transfer to NAMA at the independent valuation price.

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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218. To ask the Minister for Finance if it is appropriate to extend the anti-lobbying rules, which apply to the National Asset Management Agency, to the liquidation of Irish Bank Resolution Corporation. [18473/13]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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The liquidation of IBRC is similar to any other liquidation with the exception that the Special Liquidators have been appointed by the Minister under the Irish Bank Resolution Corporation Act 2013 rather than appointed by the Courts. As such the Special Liquidators are obliged to follow normal Companies Acts priorities throughout the liquidation process and act in a manner that ensures the assets of IBRC are managed in a way which maximises the overall return for all its creditors including the State subject to the provisions of the IBRC Act.

The Special Liquidators are in the process of devising and implementing a valuation and sales process in respect of the assets of IBRC. Any assets that are not sold to third parties for a value higher than the independent valuations will be sold to NAMA at that price. Assets that are transferred to NAMA will be subject to the anti-lobbying rules contained in Section 221 of the NAMA Act 2009. As the Special Liquidator will only be holding the assets for a short period and the sale is guided in a specified manner, the anti-lobbying provisions were not applied to it. As accountants, appointed as Special Liquidators, normal professional standards apply to all conduct.

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