The Minister for Finance, Paschal Donohoe TD, today (Wednesday) published the eighth Progress Update Report on the Special Liquidation of IBRC. This report was formally requested by the Minister for Finance from the Joint Special Liquidators of IBRC, Mr Kieran Wallace and Mr Eamonn Richardson and is now available on the Department of Finance website.
Commenting on the latest Progress Update Report, Minister Donohoe stated:
“This report highlights the ongoing impact which COVID-19 is having on some of the key aspects to delivering a successful winding up of IBRC. In particular, COVID-19 has affected the asset realisation strategies of the Special Liquidators, as well as the timely conclusion of outstanding legal cases, which have been impacted by delays in court sittings.
It is important that the liquidation process maximises the ultimate return for the State. On that basis, the Special Liquidators engaged with me earlier this year on these matters and it was agreed that the timeline for the completion of the liquidation be extended further to end-2024, subject to ongoing review. This will allow the Special Liquidators to achieve the best possible return for the taxpayer on the remaining assets while also concluding the remaining legal cases which IBRC are party to.”
“Despite the challenges caused by COVID-19, the Special Liquidators have continued to make progress on the tasks which remain in the liquidation with outstanding legal cases reducing during 2020 and other projects moving towards conclusion. I would like to thank the Special Liquidators and their staff for their continued work and I am confident that the revised timeframe will allow for the completion of the liquidation in a manner that maximises the ultimate return for the State.”
ENDS
Notes for editors
- The Special Liquidators have extended their timeframe for the final winding up of IBRC from end-2022 to end-2024. This extension can be largely attributed to the ongoing impact of COVID-19 which has resulted in delays to Court proceedings and asset realisation strategies.
- The report states that fees incurred in the liquidation for the 12 month period to 31 December 2020 were €16.4m. There are total fees incurred since the beginning of the liquidation in February 2013 to 31 December 2020 of €294m. The Special Liquidators have forecasted fees of between €26m-€33m will be incurred to complete the liquidation which will bring the total fees incurred to €320m-€327m.
- The additional €14m-€16m of fees which will be incurred as a result of extending the timeline for completion of the liquidation will allow the Special Liquidators to achieve the best possible return on the remaining assets while also concluding the remaining legal cases which IBRC are party to.
- The estimated timeline and estimated fees for the completion of the liquidation which is included in this Progress Update Report are based on a number of key assumptions including:
- No new material litigation being taken against IBRC.
- The current Covid-19 restrictions are lifted by late 2021 which allows litigation and asset realisation strategies to continue as soon as possible.
- No new material regulatory reviews or investigations which IBRC would be required to establish a special project team is assumed. Ongoing day to day regulatory interaction assumed.
- No new material creditors attempt to submit a claim in the liquidation.
- Liquidation of the remaining subsidiaries in a timely manner with no unexpected issues arising.
- Wind down of the remaining loan book of c. €3.4bn during the project period.
- The realisation of all remaining assets during the projected period in an orderly and value maximising manner.