Liquidator expected to sell €6m worth of assets left behind by Anglo

The liquidator selling assets left behind by Anglo Irish Bank is likely to offload at least half of them before the remainder is moved to Nama, Minister for Finance Michael Noonan said yesterday.

The liquidator, KPMG, must either complete the sale of assets by early this year or transfer them to Nama.

“The quantum that is under the control of the special liquidator is about €12.6 [billion]. I think, on the special liquidator’s sale of assets at present, it looks as if he’ll sell at least half of that, maybe more,” Mr Noonan told the Oireachtas Select sub- Committee on Finance.

“That’s a rough estimate . . . but the expectation . . . is that €6 billion of that will be bought before it’s transferred to Nama.”

Nama paid €12.9 billion in advance of taking on some of the IBRC loans following last February’s special liquidation and will be reimbursed by the State if the loans are valued independently at less than that outlay.

The special liquidator concluded bidding for the first of four packages of assets last month and said it expected to sell 84 per cent of that portfolio with a par value of about €2.5 billion above independent valuations.

The liquidator was charged with selling loans with a total pre-provision value of €22 billion and Mr Noonan said last month he did not expect any further calls on the State’s finances over those already budgeted when the process is complete.

The process has faced legal challenges from borrowers, most notably property developer Paddy McKillen. The Hickey pharmacy group has also tried to prevent its loans being offered for sale by the liquidator.

Nama and the banks deleveraging their loan books have found increasing demand for assets they have recently put on sale, a trend also evident in other peripheral euro zone countries such as Spain. – (Reuters)