Noonan and Anglo Hiding Behind The Same Old Lies

27 November 2012

Irish Bank Resolution Corporation

204. Deputy Finian McGrath

asked the Minister for Finance the due diligence that was undertaken before appointing Alpha Group to recover assets of the Quinn Group; and if he will make a statement on the matter. [52284/12]

205. Deputy Finian McGrath

asked the Minister for Finance the moneys paid to the Alpha Group for the recovery of assets of the Quinn Group; the guarantees that have been given for the moneys paid up front; and if he will make a statement on the matter. [52285/12]

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 204 and 205 together.

I have been advised that IBRC considered numerous alternative recovery strategies for all of the Quinn International Property Group assets in Russia and one asset in the Ukraine. This included the consideration of a number of acceptable business partners for this purpose. The Bank received many expressions of interest from both intermediaries and principals in assisting the Bank with the recovery of those assets. Fundamental to the Bank’s decision making process in this regard was the quality and financial strength of potential partners, their track record in recovering value from distressed assets in both Russia and the Ukraine and advice the Bank received from numerous independent government and non-government sources in these jurisdictions. Following a comprehensive analysis of all considerations, IBRC concluded that recommending a joint venture with A1 represented the most economically advantageous outcome for the Bank, the State and by extension the Irish taxpayer.

I have been informed that IBRC has not paid any money upfront in relation to its joint venture with A1. The joint venture with A1 involves significant initial monetary commitments by A1 and a waterfall structure to incentivise maximum recovery.

I have also been advised IBRC will not be disclosing any further details regarding the appointment of A1 due to the commercial sensitivities associated with the work to be undertaken and the associated risk that such disclosures may have a detrimental impact on the Bank’s efforts to maximise loan recoveries. In addition, as these matters relate to on-going litigation, it would be inappropriate for the Bank to comment any further.