Written answers

Tuesday, 29 September 2015

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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129. To ask the Minister for Finance if he will provide an update on the liquidation process at the Irish Bank Resolution Corporation; his views on whether the junior bondholders will receive payment during the process, the timeframe envisaged for such payments and the amounts estimated to be due. [32861/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Significant progress has been made to date in winding up the affairs of IBRC but further work remains.

A progress update report was published in March 2015, which is available on the Department of Finance website, this highlights the progress which has been made since the liquidation of IBRC in February 2013 while also highlighting the key tasks remaining in the liquidation.

While it is too early at this stage to advise on the likely timeframe for conclusion of the liquidation of IBRC, I can confirm that the liquidation of IBRC can only be concluded once all assets are realised, all creditor claims have been resolved (including those subject to litigation) and all surplus funds have been distributed to creditors. This process is ongoing.

As the Deputy is aware, the Special Liquidators published advertisements and wrote to all those known creditors in order to finalise their claims in the special liquidation of Irish Bank Resolution Corporation Limited. Creditors in the UK and Ireland had until 31 March 2015 to submit their claims and those creditors in the US had until 31 May 2015 as part of this process. I understand that subordinated bondholders have submitted claims in the region of €285m as part of this process

I am advised by the Special Liquidators that they continue to adjudicate on claims by each creditor class. As the Deputy is aware the payment of proceeds from the liquidation, the costs and expenses of the liquidation, preferred creditors and senior unsecured creditors will all rank in priority to the holders of subordinated debt.

 I am advised that it will be some time before the Special Liquidators will be in a final position to advise on the likelihood of payment of proceeds from the liquidation given the ongoing adjudication process of creditor classes, including preferred creditors, other contingent creditor claims which may crystallise from litigation and the level of future receipts from the sale of the remaining assets.

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