Adviser fees to IBRC liquidation top €214m

Professional and legal fees related to the special liquidation of IBRC — the Anglo Irish Bancorp and Irish Nationwide holding group — have reached over €214.5m.

The figures were contained in an updated report on IBRC published by the Department of Finance.

It showed that the latest 12 months to early February, the liquidators received €84m in “inflows”, including from loan receipts and sales, and had paid out €393m to unsecured creditors in interim dividends and to cover the costs and administration of the liquidation.

That left almost €1.92bn in net cash in the hands of the special liquidators.

IBRC was put into liquidation in early 2013 as part of a deal that involved the Government refinancing of the €31bn Promissory Note with the ECB.

In the first 47 months of the liquidation to the end of December, over €214.58m net of rebates was paid under the liquidation in professional and legal fees.

Before the rebates of €5m to KPMG, gross fees to the KPMG special liquidation totalled €128.1m by the end of December.

The gross fees to KPMG included almost €118.8m to KPMG Ireland and almost €8.5m to KPMG UK.

Before a rebate of €2.7m, gross fees to A&L Goodbody included over €36.8m, and €306,000 for work carried out for the Commission of Investigation.

Before a rebate of €298,000, gross fees to Linklaters amounted to €19.99m.

Other legal advisors have also received significant amounts.

These include gross fees paid to Arthur Cox of €5.68m; fees of €2.72m to Byrne Wallace; fees of €2.87m to Maples and Calder; and fees of €2.76m to Skadden, Arps, Slate, Meagher & Flom.

According to the progress report, there was an average of 189 KPMG staff working on the project last year.

The report said it did not expect significantly more work in providing information to Judge Cregan and the Commission of Investigation. IBRC has provided relevant documents to the commission regarding its investigation relating to Sitserv.

The liquidation has involved payments to unsecured creditors, including the Government.

A spokeswoman for the Department of Finance said the department had submitted related claims of around €1.12bn to the joint special liquidators of IBRC. It had so far received an interim dividend of €280m. Other state entities have also submitted claims.

The amount paid out to date by the special liquidators to all admitted unsecured creditors of the liquidation is around €290m, the department said.

The report said that the special liquidators have worked through 2,100 of 3,000 creditor claims. It is managing 175 legal proceedings.

On its investigation into overcharging interest rates, the report said 6,435 customers in the Republic and 557 customers in the US had been identified as potentially affected.

The report also said it will have completed its investigation by the end of the month under the supervision of the Central Bank in identifying the number of tracker mortgage customers of Anglo Irish and Irish Nationwide who had been overcharged.

It said, however, it estimated fewer than 50 customers had been affected in the tracker probe.

Finance Minister Michael said the special liquidators expected unsecured creditors would receive between 75% to 100% of their claims.

“I would like to commend the special liquidators and all those who have contributed to this project for their hard work over the past four years and the promising results of their efforts.”

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