Irish Banking Resolution Corporation still party to 138 legal actions

Irish Banking Resolution Corporation still party to 138 legal actions
Mr Donohoe has said the estimated liquidation fees of up to €306m should be considered in the context of the scale of the activities undertaken by the special liquidation

The Irish Banking Resolution Corporation (IBRC), formerly known as Anglo Irish Bank, remains party to a staggering 138 legal actions, despite its wind down in 2013.

Finance Minister Paschal Donohoe has revealed the number of cases the failed bank is still involved in, both as a defendant and as the applicant.

Compared to last year, the figures show the overall reduction in cases since the last report is 43 — when you take into account the four new proceedings.

Two new proceedings have been taken against IBRC in recent months, bringing the total number to 138 cases.

Mr Donohoe has said the estimated liquidation fees of up to €306m 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 market since 2013 and raised inflows to date of €17bn which has been to repay the outstanding liabilities of IBRC.

Kieran Wallace of KPMG was appointed special liquidator by then finance minister Michael Noonan on February 7, 2013, as part of his move to end the controversial €3bn annual promissory note payment from the State to the failed bank.

Mr Donohoe was responding to questions from Fianna Fáil’s finance spokesman Michael McGrath.

The figures released show that the IBRC is defending 111 cases, which is down from 143 the year before. IBRC is the plantiff in 25 “recovery and enforcement actions”, the documents show.

Mr Donohoe said many of these cases were instigated prior to the special liquidators appointment, which IBRC continues to pursue.

In other instances, and in accordance with the special liquidators’ strategy, IBRC has issued proceedings with a view to maximising recovery, for debt due and owing, to enforce judgments obtained, for asset recovery or protection, or seeking damages for acts of professional negligence,” he said.

The special liquidators are separately managing 113 proceedings in which IBRC is defendant. According to Mr Donohoe, these proceedings involve “various allegations (predominantly of mis-selling of financial investment products, mismanagement, negligence, breach of contract/breach of duty) in which various reliefs are sought against IBRC (generally to include a claim for damages and/or declarations concerning the validity of security)”.

IBRC continues to attempt to reduce its exposure to defendant litigation, he said.

“The special liquidators assess the merits of defending such litigation and, where deemed appropriate, IBRC Group legal implements the special liquidators’ strategy of reducing the number of defendant cases in the most cost effective manner possible,” Mr Donohoe said.

Late last year, debt campaigner David Hall initiated a legal action against Mr Donohoe for allegedly failing to have proper oversight over fees tied to IBRC’s liquidation up until February.

The liquidators said earlier this year they expect the liquidation of IBRC should be substantially completed by the end of 2022.

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