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Photocall Ireland
Chapter 15
Former Anglo Irish Bank files for US bankruptcy
The move is being made to protect the institution’s US assets.
THE IRISH BANK Resolution Corporation has filed for bankruptcy in the US. According to the court service for the state of Delaware, the institution filed for ‘Chapter 15′ yesterday.
A spokesperson for the institution told TheJournal.ie the move was being made to “secure the protection of the courts for IBRC assets located in that jurisdiction.
“These assets form part of the liquidation process currently underway.”
Filing under Chapter 15 allows a company to protect itself from US lawsuits while insolvency proceedings are under way abroad.
The entity, comprised of the former Anglo Irish Bank and Irish Nationwide, was put into liquidation by the Irish Government earlier this year.
The Dáil sat all night to pass the legislation for the move, made in a bid to reduce the immediate burden of promissory note payments. The IOU notes amounting to €31 billion were given to the IBRC around 2010 to allow it to borrow funds from the Central Bank.
It had been originally planned that the bank would be given until 2020 to deal with its substantial loan book, work out its asset portfolio and achieve “full resolution”.
According to Bloomberg, IBRC listed more than a billion dollars each in assets and debt in its bankruptcy petition.
Explainer: What happened last night? Why was IBRC liquidated? What happens now?
Read: Everything you need to know about the promissory notes but were afraid to ask >
