KPMG to re-sell remaining legacy IBRC loans in new sale process

IBRC’s special liquidators KPMG has confirmed today that a process is now underway to attempt to re-sell all the remaining unsold debt from projects Evergreen, Stone and Sand.

KPMG logoKPMG will attempt to sell the legacy debt which did not trade at the reserve prices first time around. The nominal loan pools are comprised of:

  • €400m of Project Evergreen loans, the corporate loan book;
  • €1.4bn of Project Stone loans, including predominantly standalone tranches; and
  • €648m of Project Sand loans, the Irish residential mortgage book.

In a statement, KPMG said: “Mr. Kieran Wallace and Mr. Eamonn Richardson of KPMG Dublin have informed the Minister for Finance that they expect the proceeds raised from the sale of IBRC assets will be sufficient to fully repay the IBRC debt to NAMA. The State’s funding of IBRC (in special liquidation) was transferred from the Central Bank to NAMA when the Bank was placed in Special Liquidation.

“Following the Minister’s instructions, NAMA will not now be obliged to purchase unsold IBRC assets at their independent valuation as previously envisaged. The Special Liquidators will now devise and manage a further sales process in respect of these unsold assets in a manner that maximises the return to all remaining creditors of IBRC, including the State.

“The Special Liquidators will be writing in the coming weeks to borrowers with unsold loans to inform them of the further sales process in respect of their loans.”

In the first phase of loan sales, KPMG sold €19.8bn out of a total book of €21.7bn capping a considerably better disposal level than the market anticipated.

Such has been the weight of international appetite chasing real estate loans, that NAMA is currently evaluating a fast-track wind-up of its remaining income-producing assets, at the request of the Irish government.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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