Statement from Minister Donohoe regarding Special Liquidators’ payment of final dividend to unsecured creditors of IBRC
State in line to receive further dividend of €600m from liquidation of IBRC
The Joint Special Liquidators of IBRC have today (Tuesday) confirmed to the Department of Finance that they will commence the payment of the final dividend of 50% to admitted unsecured creditors of IBRC in the coming weeks. This payment represents the final instalment of the principal owed to this class of creditors, which includes the State, as at the date of the liquidation of IBRC in February 2013. The Joint Special Liquidators of IBRC also confirmed today that, given the success of the liquidation to date, it is their expectation that there will be further funds recoverable to the State following repayment of other creditors, including subordinated bondholders. The Joint Special Liquidators have given no timeframe in relation to the commencement of this payment.
Referencing the confirmation today by the Joint Special Liquidators of IBRC of their intention to shortly commence the final dividend payment to all admitted unsecured creditors of IBRC, the Minister for Finance, Paschal Donohoe T.D. has welcomed this development.
Commenting, the Minister stated: ‘The confirmation of this final dividend payment highlights the success of the liquidation to date, which has far exceeded our expectations at the outset. This brings clarity to all admitted unsecured creditors that they will receive 100% of what has been owed to them since IBRC went into liquidation in February 2013. The payment for the State, as the largest unsecured creditor of the liquidation with claims submitted in the region of €1.2bn, will be used to improve the exchequer borrowing requirement as the funds received will increase the cash balances of the Central Fund and thereby reduce the required level of borrowing’.
Concluding, the Minister was keen to highlight the work of the Joint Special Liquidators in the success of the liquidation: ‘The confirmation of the final dividend payment to all admitted unsecured creditors highlights that the Joint Special Liquidators, Kieran Wallace and Eamonn Richardson, continue to deliver on the clear message which was given to them at the outset of the liquidation which was to deliver the best possible outcome to creditors, and I commend them and their staff on their work to date in achieving this. I am confident that they will complete the remaining tasks in the liquidation while working towards delivering the best possible outcome to creditors’.
Notes to Editors:
Detailed information in relation to the special liquidation can be found in the most recent progress update report published by the Department of Finance earlier this year - https://www.finance.gov.ie/wp-content/uploads/2018/05/IBRC-progress-update-report-year-ended-31-December-2017.pdf