Minister Donohoe publishes the Ninth Progress Update Report from IBRC Special Liquidators
The Minister for Finance, Paschal Donohoe TD, today (Friday) published the ninth 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 progress which the Joint Special Liquidators have made during 2021 in their continued efforts to wind up IBRC in a timely fashion. The conclusion of outstanding legal cases, COVID-19, and more recently the Russian invasion of Ukraine, have affected the asset realisation strategies of the Special Liquidators. This Report shows a decreasing number of legal cases which the Joint Special Liquidators are managing, which is a good indicator of the progress being made.
It is important that the liquidation process maximises the ultimate return for the State. On that basis, it was agreed that the liquidation be completed by 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.
The Special Liquidators have continued to make progress on the tasks which remain in the liquidation. I would like to thank the Special Liquidators and their staff for their continued work and I am confident in the completion of the liquidation in a manner that maximises the ultimate return for the State.”
Notes for editors
- The liquidation completion date remains forecast to be 31 December 2024. This is subject to ongoing review and dependent on the resolution of litigation proceedings and additional assumptions set out below.
- The report states that fees incurred in the liquidation for the 12 month period to 31 December 2021 were €11.4m. There are total fees incurred since the beginning of the liquidation in February 2013 to 31 December 2021 of €305m. The Special Liquidators have forecasted fees of between €15.5m-€19.5m will be incurred to complete the liquidation, which will bring the total fees incurred to €320.5m-€324.5m.
- In the last update report, published in July 2021, the total cost of the liquidation was estimated at between €320m-€327m. Therefore, forecasted fees remain largely unchanged from forecasts presented in the Eighth Progress Report.
- 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:
- Stabilisation of the Ukraine conflict required prior to 2024 to enable the sale of assets in Russia and Ukraine.
- No new material litigation being taken against IBRC.
- No further Covid-19 restrictions are put in place, i.e., no obstacles to current litigation and asset realisation strategies.
- 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. €3.5bn during the project period.
- The realisation of all remaining assets during the projected period in an orderly and value maximising manner.