Early wind up means IBRC creditors repaid €3bn less

The IBRC — comprising former Anglo Irish Bank and Irish Nationwide — will have €3bn less to repay creditors after the Government sped up its liquidation, two sources said on condition of anonymity.

Finance Minister Michael Noonan’s February decision to wind up IBRC in 2013, seven years earlier than planned, will force the bank to forgo funds the Government had pledged in 2010 as part of the bailout, said the sources, who asked not to be identified.

That will leave IBRC with less cash to pay unsecured bondholders and litigants unless the Government puts more money into the company. Among the losers are as many as 120 litigants suing the bank and 16 customer-owned lenders which bought an equity-linked bond from Anglo’s private bank. Mr Noonan said last month it’s still too early to put a value on Anglo Irish’s remaining assets.