The Minister may direct NAMA to acquire from IBRC specified bank assets at a price that the Minister, acting in accordance with the independent valuation, directs.
The acquisition by NAMA of a bank asset under this procedure takes effect and is valid and enforceable irrespective of any legal restriction or prohibition that there may be on the acquisition of such a bank asset.
A “special liquidator” having been appointed, IBRC is being wound up and its assets and liabilities are to be transferred to third parties including the National Asset Management Agency in arrangements that seek to resolve the debt of IBRC to the Central Bank of Ireland.
Background In 2009, in the face of grave concern about the solvency and governance of Anglo Irish Bank Corporation plc (“Anglo”), the bank was nationalised and a programme launched to run down its assets, liabilities and operations.
The Act provides that the making of the special liquidation order has, for the purpose of any enactment, rule of law, contract, deed or other agreement to which IBRC is a party, the same effect as if it were a winding-up order made by the High Court or the appointment of an official liquidator.
This is relevant to the well-publicised accommodation reached by the Irish government with European Union institutions (and, in particular, the European Central Bank) in respect of the promissory notes issued by the Minister to certain financial institutions (including IBRC) in 2010.
Those promissory notes were issued to provide necessary capital to each recipient and were used by the recipient institutions to access the Central Bank’s emergency liquidity assistance facility.
The remainder of this briefing sets out key aspects of the Act and significant consequences of the making of a special liquidation order.
The Special Liquidation A modified form of the statutory rules on the liquidation of a company apply to the liquidation of IBRC, the principal differences being the greatly reduced roles of the High Court and of the Central Bank in the case of the winding up of IBRC.