Michael McGrath (Cork South Central, Fianna Fail)
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155. To ask the Minister for Finance when an updated projection of the final outcome of the Irish Bank Resolution Corporation liquidation will be available; if the State expects to pay all unsecured creditors including junior bondholders; when cash will be returned to the State; and if he will make a statement on the matter. [1892/16]

Michael Noonan (Limerick City, Fine Gael)
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The Special Liquidators intend to provide an update on the winding up of Irish Bank Resolution Corporation Limited (in Special Liquidation) by way of their third progress update report in the first quarter of 2016.

​I am advised by the Special Liquidators that they currently have a cash balance in excess of €2.1 billion on hand which will be available for distribution to creditors.​

The ultimate level of dividend paid, if any, to each creditor cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and the other contingent creditor claims which may crystallise, including those from litigation, are known.

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. Each class of creditor will be paid according to their legal priority as set out in the Companies Acts.

The priority for the distribution of assets under the Companies Act’s is generally:

1.Costs and expenses of the ongoing liquidation (these claims are certain to be paid in full)​;

2.Preferential creditors, including certain taxes and employee and pension claims arising prior to the date of liquidation (these claims are certain to be paid in full);

3.Amounts owing to NAMA under the Facility Deed acquired from the Central Bank which were secured by a floating charge over the bank’s assets (these claims have been fully repaid and the floating charge has been released);​

4.Unsecured creditors, including:

- Debts owing to the Minister/NTMA under ELG

- Debts owing to the Deposit Guarantee Scheme

- Unguaranteed debt/depositors

- Unknown, including:

* Local authority development bonds

* Suppliers / other "normal" unsecured creditors

* Employees that are not preferential creditors

* Contingent creditors and other potential costs principally relating to litigation, etc. 

5.Subordinated creditors

6.Members of the company - the Minister currently holds 100% of all shares and preference shares in the company.