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Winding down

90 per cent of IBRC's loan book has now been sold, following 'Project Stone' deal

Deals have been done on two huge batches of loans: ‘Project Stone’ which is worth over €9 billion, and ‘Project Sand’ worth almost €2 billion.

DEALS ON TWO major batches of IBRC loans have now been wrapped up — the special liquidators of the former Anglo Irish Bank have confirmed.

‘Project Stone’, made up of commercial real estate loans, has a par loan value of €9.3 billion.

‘Project Sand’, which consists of residential mortgage loans, has a par value of €1.8 billion.

According to liquidators KPMG:

85 per cent of Project Stone has been sold to four buyers, namely Deutsche Bank, Lone Star, CarVal Investors and Goldman Sachs in relation to the loan portfolio tranches, and to a number of other third parties in relation to single borrower connections.

64 per cent of Project Sand has been sold to two buyers, namely Lone Star and Oaktree Capital Management, L.P.

Conclusion of the two deals means around 90 per cent of the IBRC loan book has now been sold to third parties (approximately €19.8 billion out of a total book of €21.7 billion).

Finance Minister Michael Noonan said the sales represent a significant milestone for the State in relation to the liquidation of IBRC, and that they significantly limit the amount of assets now likely to transfer to NAMA.

According to a statement:

These successful sale to third parties are finally breaking the link between Anglo Irish Bank and the Irish taxpayer. This link was a major factor in forcing the previous Government to seek EU and IMF assistance.The success of the liquidation ensures that no further calls will be made on the taxpayer over those already budgeted.

The Special Liquidators will continue to manage the wind down and liquidation of the remaining assets of the bank which is expected to continue for some time until all assets and liabilities of the bank are fully resolved.

According to the Department of Finance, the buyers of the Project Stone mortgages have agreed to comply with the terms of the Central Bank Code of Conduct on Mortgage Arrears.

Most of the mortgages included in the deal were originally issued by Irish Nationwide.

Explainer: Why was IBRC liquidated? What happens now?

Read: Everything you need to know about the promissory notes but were afraid to ask >

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