Judge approves sale of Rush Credit Union loan book

Progressive aims to reopen business after acquiring loans and two buildings

In November, the High Court ordered the winding-up of Rush Credit Union after being told it was insolvent. Photograph: North County Leader

In November, the High Court ordered the winding-up of Rush Credit Union after being told it was insolvent. Photograph: North County Leader

 

The President of the High Court has given permission to the joint liquidators of Rush Credit Union to sell its performing loan book. Mr Justice Peter Kelly was told that the Central Bank had no objection to the orders sought.

The loans have been acquired by Progressive, one of Dublin’s largest credit unions. It has also acquired the buildings of the former Rush credit union, one on Sandy Road in Rush and a second in Lusk.

“Progressive will reopen the Rush Credit Union premises on Monday morning next, February 13th. Meanwhile, from this Friday February 10th, all former Rush members can use any of Progressive Credit Union’s six branches in Balbriggan, Skerries, Swords, Donabate, Baldoyle or Glasnevin. We are also looking at reopening the Lusk branch of the former Rush Credit Union in due course,” Progressive chief executive Sean Staunton said.

Compensation payments

The High Court last November ordered the winding-up of the north Co Dublin credit union after being told it was insolvent.

The Central Bank, which applied for the winding-up orders, said it had issued €22.3 million compensation payments through the deposit guarantee scheme to some 9,700 members of the credit union. Jim Luby and Tom Rogers of McStay Luby were appointed joint liquidators.

The court heard last November that Rush Credit Union’s net liabilities over assets were some €2 million and it had minus 8.7 per cent reserves which required to be funded to the tune of €4.73 million. Credit unions are required to have at least 10 per cent reserves of total assets.

The court was also told that, despite engagement and assistance from a number of bodies since 2010 to assist the credit union with its difficulties, there continued to be significant issues including in relation to internal governance, lending practices and a significant level of misappropriation of funds.