IBRC files bankruptcy petition in the US

Petition filed to protect US holdings, listing more than $1bn each in assets and debt

Taoiseach Enda Kenny during talks last February to move legislation to dissolve the IBRC.

Taoiseach Enda Kenny during talks last February to move legislation to dissolve the IBRC.

Tue, Aug 27, 2013, 15:14

The Irish Bank Resolution Corporation has filed a Chapter 15 bankruptcy petition in Delaware to protect US holdings, listing more than $1 billion each in assets and debt.

Chapter 15 shields foreign companies from US lawsuits and creditor claims while a company continues the process abroad.

The Irish government put the IBRC, formerly Anglo Irish Bank, into liquidation in February under a plan to restructure its €34.7 billion bailout.

The bank was taken over by the state in January 2009 as its bad loans soared following the collapse of the nation’s real-estate market.

Its remaining loans were valued at €16.6 billion in June 2012, excluding €10.9 billion of provisions for future losses, according to its most recent set of public accounts.

Its peak loan book stood at over €70 billion in 2008.

Anglo Irish bank was founded in 1964, and was once the third largest financial institution in Ireland, according to a filing by special liquidator Kieran Wallace, based in Dublin.

Mr Wallace said “a decline in property prices” and “illiquidity in global wholesale funding markets” helped to precipitate liquidation.

Court papers show the bank has outstanding unsecured notes of $165 million due in 2015 and $35 million due in 2017.

Bloomberg