IBRC junior bondholders submit claims of €285m

Junior bondholders of the former Anglo Irish Bank could be in line for a bigger payment than was previously expected after it emerged they have lodged larger-than-expected claims.

The liquidation of IBRC has netted more than €16bn meaning there will be a surplus of about €1.85bn to be distributed among its unsecured creditors, including junior bondholders.

The State, which is owed €1.1bn, is ahead of the junior bondholders in the payment queue as are other creditors but those at the bottom of the pile are still likely to be paid, given the size of the surplus.

Previous estimates put the maximum cost of claims from unsecured creditors at €270m but it has emerged this figure has been passed.

Finance Minister Michael Noonan told the Dáil in reply to a question from Sinn Féin finance spokesman Pearse Doherty that subordinated bondholders have submitted claims of around €285m to date.

“I am advised by the special liquidators that they continue to adjudicate on claims by each creditor class,” he said.

“As the deputy is aware the payment of proceeds from the liquidation, the costs and expenses of the liquidation, preferred creditors and senior unsecured creditors will all rank in priority to the holders of subordinated debt.”

Mr Noonan said it is likely to be “some time” before the special liquidators, Kieran Wallace and Eamonn Richardson of KPMG, will be in a position to say whether or not junior bondholders will be paid.


Lifestyle

Spring has sprung and a new Munster festival promises to celebrate its arrival with gusto, says Eve Kelliher.Spring has sprung: Munster festival promises to celebrate with gusto

The spotlight will fall on two Munster architects in a new showcase this year.Munster architects poised to build on their strengths

Prepare to fall for leather, whatever the weather, says Annmarie O'Connor.Trend of the week: It's always leather weather

The starting point for Michael West’s new play, in this joint production by Corn Exchange and the Abbey, is an alternative, though highly familiar, 1970s Ireland. You know, elections every few weeks, bad suits, wide ties, and a seedy nexus of politics and property development.Theatre Review: The Fall of the Second Republic at Abbey Theatre, Dublin

More From The Irish Examiner