merrion street

The Minister for Finance, Mr. Paschal Donohoe T.D. today published the fifth Progress Update Report on the Special Liquidation of IBRC. This report was formally requested by the Minister for Finance, through the Department of 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 continued progress being made on the liquidation, the Minister for Finance, Mr. Paschal Donohoe T.D. stated:

This latest Progress Update Report continues to highlight the progress being made by the Joint Special Liquidators in winding up IBRC. In December 2017, they began issuing a second interim dividend payment of 25% to admitted unsecured creditors of IBRC bringing the total dividend paid so far to 50%. This report also highlights that the Joint Special Liquidators intend to make a further dividend announcement before the end of this year with the continued expectation that the eventual unsecured creditor dividend will be in the range of 75%-100% of all eligible claims. However, the ultimate level of dividend paid to each creditor cannot be known until all remaining tasks have been completed.

Minister Donohoe also welcomed the inclusion of an estimation of a timeline for the completion of the liquidation:

As this Report shows, a large amount of work has been completed in the liquidation, however there still remains a range of workstreams which will take time to complete, particularly the resolution of the remaining legal cases. The Joint Special Liquidators have indicated their expectation that the liquidation of IBRC should be substantially completed by the end of 2022 at a total estimated liquidation cost of between €291m-€306m, however it is important to note that this is subject to change depending on future events which are outside the control of the Joint Special Liquidators.

I would like to thank the Joint Special Liquidators and their staff who have worked on this project over the past five years and I note that this report highlights the progress which they have made while also highlighting the remaining tasks which they will be required to complete over the coming years. I am confident that their remaining work on this liquidation will be completed with the same effort as has been shown since the outset of the liquidation.

Notes for editors

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:

• The on-going management of c. 136 sets of legal cases to which IBRC (in special liquidation) remains party are concluded and any appeals heard within the projected period.

• 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.

• Wind down of the remaining loan book of c. €3.5bn during the projected period.

• The realisation of all remaining assets during the projected period (majority can only be sold upon resolution of ongoing litigation) in an orderly manner without incurring significant transaction and tax costs.

* Please see page 37 of the Progress Update Report for further information on the estimated timeline and estimated fees.

The estimated liquidation fees of between €291m-€306m for the completion of the liquidation should be considered in the context of the scale of the activities undertaken by the Special Liquidation which has seen almost €22bn of assets prepared and brought to the market since 2013 and raised inflows to date of €17bn which has been to repay the outstanding liabilities of IBRC.

Tasks which remain to be completed include:

• The on-going management of circa 136 legal cases (which has reduced from c. 175 cases since May 2017).

• The completion of the creditor adjudication process.

• The work with the Commission of Investigation.

• The management of the remaining loan book.

• The realisation of all remaining assets.

• The continued compliance with regulatory and other required reviews.