The Minister for Finance, Mr Michael Noonan, TD, today noted the decision of the High Court to extend the appointment of the special manager at Newbridge for a further six months, on foot of an application by the Central Bank. The special manager will continue to oversee the running of Newbridge Credit Union with a view to strengthening the financial position of the credit union.
The Minister commented:
"The Government remains committed to the credit union sector. New legislation has been enacted this week to bring forward important reforms and €250 million is being contributed to the Credit Union Fund to support credit union restructuring.
The extension of the appointment of a Special Manager is a necessary measure and is in the best interests of the members of Newbridge Credit Union. I would like to remind credit union members in Newbridge and in the wider credit union movement that their savings are protected under the terms of the Deposit Guarantee Scheme."
ENDS
21 December, 2012
Notes for editors
1. What is being announced? Why is the extension needed?
Following an application by the Central Bank, the High Court today agreed to extend the term of the appointment of the special manager of Newbridge Credit Union (NCU) for a further six months. The special manager will continue to oversee the running of Newbridge Credit Union with a view to strengthening the financial position of the credit union. Credit union members are reminded that eligible deposits of credit union members, up to €100,000, are fully guaranteed by the statutory Deposit Guarantee Scheme.
2. How much has the special manager cost to date?
The Court approved fees for the first five months (13th January to the 8th June 2012) of the appointment of €509,544 ex vat plus expenses of €20,643, which included fees for the production of the special manager reports. Fees for the period 9th June to the 14th December are subject to court approval in the New Year.
The special manager agreed today to voluntarily cap his fees and those of the firm at €9,500 per week for operational matters. In the event that extra work is required it will be agreed with the Central Bank in advance and billed separately.
3. When will there be an AGM?
The Central Bank appreciates that NCU would normally hold its AGM and issue a dividend at this time of year, and that some members would quite naturally be making enquiries about whether an AGM is taking place. The Central Bank has discussed with the Special Manager the question of the AGM and the Central Bank does not consider that it is appropriate for an AGM to be held at this time.
4. What options are being explored for NCU?
The central bank is seeking a solution whereby members will continue to have access to local credit union products and services. This requires, however, that the issues at Newbridge Credit Union are resolved. The Central Bank has been working intensively to find a solution for members.