Nearly €180m spent on IBRC liquidation, says Michael Noonan

Just under €180 million was spent in costs on the liquidation of Irish Bank Resolution Corporation from February 2013 up to the end of last year, Minister for Finance Michael Noonan has confirmed.

In reply to a question from Sinn Féin finance spokesman Pearse Doherty, the Minister said €179.56 million, net of rebates, had been spent on work carried out by KPMG as special liquidators, and law firms A&LGoodbody and Linklaters. Of this amount, €95.47 million related to fees for work carried out by KPMG, €32.5 million to Irish firm A&L Goodbody, and €18.97 million to London-based Linklaters.

Advisers’ costs

Other professional advisers’ costs amounted to €18 million while other legal advisers costs were €14,603,000.

Separately, IBRC's special liquidators – Kieran Wallace and Eamonn Richardson – secured a number of rebates from advisers worth just under €8 million. This included a rebate of €5 million from their own firm KPMG, €2.7 million from A&L Goodbody and €261,000 from Linklaters.

The Minister told Mr Doherty it was not possible to quantify the final costs of the liquidation at this time due to the amount of work that remains outstanding.

“I am advised by the special liquidators that it is not possible for them at this time to confirm or estimate the final cost of the liquidation as there remains a number of tasks in the liquidation to be completed including the ongoing management of over 350 legal cases, the completion of the creditor adjudication process, the work with the commission of investigation, the management of the remaining loan book and the realisation of all remaining assets,” he said.

Merger

IBRC was formed in July 2011 from the merger of the rump of the former

Anglo Irish Bank

and Irish Nationwide Building Society, both of which had been nationalised by the Government following the financial crash in late 2008.

The bank was liquidated in dramatic circumstances on February 7th, 2013, and has been in wind-down mode since that point.