Colm Keaveney (Galway East, Fianna Fail)
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284. To ask the Minister for Finance if he will confirm that minutes of meetings between the Irish Bank Resolution Corporation and his Department in August 2012 record that the restructuring of a company's loans (details supplied) were difficult, as the shareholders were not communicating; if he is satisfied that the eventual write-down of the loans was conducted prudentially; if he ever took part in any meeting, conversation, or discussion, verbal, written, or by email, regarding the write-down of the company's loans; and, if so, if he will provide the details of these; and if he will make a statement on the matter. [21234/15]

Michael Noonan (Limerick City, Fine Gael)
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I can confirm that the minutes of a meeting between IBRC and officials from my Department which took place on 13 August 2012 record that the issue of restructuring of the loans associated with the company referred to in the question was "particularly difficult as IBRC would like to do restructuring but are unable to at present as the shareholders are not communicating".

The eventual sale of the loans associated with the company referred to in the question was a matter for the Special Liquidators of IBRC. I was not party to these discussions.

Under both the IBRC Act and the Companies Act, the Special Liquidators are charged with maximising the value of the assets for the creditors through their liquidation.  In the context of a sale of a loan by the Special Liquidators, while the proceeds of a loan sale may not equate to the amount outstanding under the loan agreement, there is no write-down of the debt owed by the borrower.  

To ensure the Special Liquidators maximised value to the creditors of IBRC, in open and transparent sales processes, the Special Liquidators have sold the relevant loan assets, including the loans associated with the company referred to in the question, for an amount no less than the independent valuation obtained.  In doing so, the gross amount outstanding on the loan remains due and payable in full by the borrower to the new owner of the relevant loan assets  in line with the contractual provisions of the original loan contract.  

Any subsequent change in the terms of the loan contract would be a matter for the new owner and the borrower.