The special liquidators of IBRC, KPMG’s Kieran Wallace and Eamonn Richardson, are writing to all its clients over the next few weeks to solicit their views on how the sales of their loans should be handled.
They will also update them on their loans and collateral obligations.
When IBRC was liquidated in February as part of the restructuring of the €28bn in promissory notes, there was a €16bn loan book sitting on IBRC’s balance sheet.
Finance Minister Michael Noonan announced that all of these loans would be put up for sale.
Any loans that were not sold or failed to reach a reserve would be transferred to Nama.
The original timeframe was for the loan valuation process to be completed by May and the sales process by August.
The revised schedule is for the loans valuation process to be completed by the end of November and the sale of these completed by the end of December.
“At this point, the special liquidators have taken no decision as to how each of the loans and collateral obligations will ultimately be offered for sale,” the special liquidators said, adding that they are taking professional advice on the method of disposing of loans and collateral obligations, and on the criteria for determining who may bid for them.
“Any written representations made by borrowers will be considered by the special liquidators along with their professional advice before they arrive at their decisions.
“Prior to the commencement of the sales process, borrowers will be notified of how their loans and collateral obligations will be disposed of by the special liquidators.”
The special liquidators say that the loans will most likely be sold in bundles, with only a few put up for sale on an individual basis.
The special liquidators are also notifying borrowers of criteria which they will have regard to when deciding on the method of disposing of loans and collateral obligations and who may qualify to bid on these.
Borrowers are also being provided with extracts from the ministerial instructions to the special liquidators of Feb 7 as they relate to the sales process, and the further instructions dated May 10 and Jul 20.
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