State Had To Liquidate IBRC To Protect Financial System, US Court Hears

Lawyers for State-owned Irish Bank Resolution Corporation, formerly Anglo Irish Bank, pleaded for protection from a US bankruptcy court saying that the liquidated bank was a “very unique” case, the Irish Times reported. The Delaware bankruptcy court heard the bank’s case for Chapter 15 bankruptcy protection, guarding about €1 billion of US assets and blocking legal actions against it, at a hearing yesterday. US-based Irish developer John Flynn and two US companies Castleway and Walnut Properties, owned by Swiss-based developer John McCann, are challenging IBRC’s attempt to secure court protection. They claim to be disadvantaged as creditors and borrowers by the Government’s passage of emergency legislation in February putting the bank into special liquidation. The law was passed as part of the restructuring of the €35 billion State bailout to reduce the annual cost of the nationalised bank. After a hearing of more than four hours, US bankruptcy judge Christopher Sontchi asked both sides to submit documents outlining the factual evidence and conclusions of law setting out their arguments. Read more.