Nama appoints 25 firms to advise on debtors

A host of firms are in line for lucrative work from Nama to help the agency evaluate and monitor its debtors.

Nama appoints 25 firms to advise on debtors

This follows Nama announcing that 25 firms have been appointed to three separate panels that will provide the advisory services on its debtors.

However, the work available to the firms will not be as large as initially thought.

In the tender advertised last November, Nama stated that the work would involve the agency taking on all Irish Bank Resolution Corporation loans that remain unsold following the loan sale process managed by the special liquidators of the IBRC.

But Finance Minister Michael Noonan confirmed yesterday no IBRC loans will be transferred to Nama due to the success of the sales process to date.

In the tender agreement made by Nama, the agency has selected seven firms for ‘high complexity connections’ relating to borrowers with substantial debt levels with multiple entities across complex group structures and jurisdictions.

The seven are Deloitte & Touche; Ernst & Young; Grant Thornton Corporate Finance; MKO Partners; PricewaterhouseCoopers; RSM Farrell Grant Sparks; Duff & Phelps; and Smith & Williamson.

In relation to the agreement for working on borrowers with medium complexity connections with debt levels between €20m and €50m, the 10 firms that Nama has selected are Baker Tilly Ryan Glennon, BDO; Crowe Horwath Bastow Charleton; Gilroy Gannon; HLB McKeogh Gallagher Ryan; Kavanagh Fennell; KPMG; Mazars; Quayle Munro Project Finance and Bruce Shaw Consulting and Russell Brennan Keane.

In terms of the low complexity connections relating to debtors with debts less than €20m, the eight firms selected by Nama are BMOL Partners; Gallagher Keane Consortium; Horwood Neill Holmes; Hughes Blake; JPA Brenson Lawlor; McStay Luby; O’Connor Pyne & Co and Coombes Corporate Finance and Ross Boyd.

The tender agreement is for a duration of four years and is subject to annual review or shorter period as Nama deems appropriate.

Nama states that the work will involve firms to provide advisory services in connection with the sourcing, review, evaluation, and monitoring of borrower financial information and strategies in connection with assisting Nama with its interaction with those borrowers.

The establishment of Nama has proved to be a boon for outside agencies with Mr Noonan confirming last December that a total of €143m has been paid out since Nama’s inception in 2009.

The spend on external consultants was much higher at the outset with €29m spent in the first two years on loan diligence costs with a further €12m spend on property due diligence in 2010 and 2011.

The total spend in those two years totalled €117.5m with €73.16m spent in 2011 and €44.4m.

However, those costs last year had reduced sharply with €4m spent on outside agencies to the end of June last.

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