The Central Bank has secured an unprecedented High Court order appointing a special manager to manage the entire business of Newbridge Credit Union amid concerns about its financial position.
The President of the High Court, Mr Justice Nicholas Kearns, made the order this afternoon after being told by Paul Gallagher SC, for the Central Bank, it was being sought with the approval of the Minister for Finance and was in the interests of depositors.
The intention was to restore the position of the credit union and it would be "business as usual" following the appointment of Luke Charleton of Ernst & Young as special manager, counsel said. The appointment is for a period of no longer than six months.
In correspondence with the bank, the Board of NCU had disputed any need for appointment of a special manager and said it had put measures in place to address the situation at the credit union. It also sought a meeting to discuss an alternative to the proposed special manager appointment.
The application to the court, made on an ex parte basis (one side only represented) is the first of its kind made under the relevant provision of the Central Bank and Credit Institutions (Resolution) Act 2011.
:quality(70)/s3.amazonaws.com/arc-authors/irishtimes/7d6f4bef-80c2-4932-9cb4-a7164db31957.png)