Ireland

AIB and KBC Bank have agreed a deal with the Irish Mortgage Holders Organisation (IMHO) which will allow people to be debt free within three months, therefore providing for one of the shortest effective bankruptcy terms in the world, the Irish Times reported. Under the new structure, clients of the IMHO who have an unsustainable mortgage, and who choose to voluntarily surrender their property, will be processed through an accelerated Personal Insolvency Arrangement (PIA) which will include any unsecured debt that might exist. This would include credit card debt.

Explanations from members of bankrupt businessman Sean Quinn’s family concerning transactions involving movement of substantial sums between national and international accounts in 2011 and 2012 lack “any real credibility”, the receivers appointed over the Quinns’ accounts and assets have claimed before the Commercial Court, the Irish Times reported. On consent of the Quinns, Mr Justice Peter Kelly today made orders under which various members of the family are to set out, in sworn affidavits, their explanations for 67 transactions before the matters returns to court on June 30th.

The liquidator of Pierse Contracting, once Ireland’s second-biggest construction company, began a High Court action seeking restriction orders against nine of its former directors under section 150 of the Companies Act, 1990, yesterday, the Irish Times reported. Pierse went bust in 2010 leaving a deficit of €212 million, making it one of the biggest collapses of the bust. About €50 million was owed by Pierse to unsecured creditors, including subcontractors.

The Commercial Court is to fast-track the action by the family of bankrupt businessman Sean Quinn against the Central Bank, Minister for Finance and 10 former board members of Anglo Irish Bank. They are claiming multi-million euro damages over an alleged conspiracy to unlawfully shore up the share price of Anglo, the Irish Times reported. If the regulator and Minister were not involved, Anglo could not, and would not, have undertaken €2.34 billion loan transactions causing “catastrophic and permanent” damage to the Quinns and the collapse of the Quinn group, it is claimed.

The Government will establish an €800 million lending fund for small and medium-sized businesses by the end of the year after Ministers gave the go-ahead for the body, known as the Strategic Banking Corporation of Ireland (SBCI), the Irish Times reported. Minister for Finance Michael Noonan said the SBCI – backed by German, European and Irish money – would provide lending arrangements not currently available to SMEs in Ireland. “The best way to see it is to see it as a fund, to see it as a big fund.

Former Anglo Irish Bank Corp. Chief Executive Officer David K. Drumm, sued by the defunct lender over an unpaid personal loan, conceded to a U.S. judge he made “a lot of errors” in his bankruptcy filing and wasn’t aware he needed to reveal $1.2 million in cash transfers to his wife, Bloomberg News reported. Drumm, 47, filed for personal bankruptcy protection from creditors in 2010 in Boston, two years after he began moving money to a new account set up for his wife. Anglo Irish argues Drumm can’t use U.S.

Pre-tax losses at ACC Bank increased to €310 million last year, up from €213 million in 2012. The increase in losses reflected additional impairments on assets especially in respect of property related exposures, the Irish Times reported. In its final annual results as a licensed bank, the bank said total loans and advances to customers at year end amounted to €2.6 billion, in comparison to the €2.8 billion at the end of 2012. In October, ACC announced plans to withdraw from providing standard banking products, such as current accounts, to focus solely on debt recovery.

A U.S. bankruptcy judge signed off on the sale of some €15 billion ($20.6 billion) of soured loans on the books of what was once one of Ireland's largest banks as the country digs out from the wreckage of its collapsed property market, The Wall Street Journal reported. Judge Christopher Sontchi on Tuesday approved Irish Bank Resolution Corp.'s sale of the loan portfolios at a hearing in U.S. Bankruptcy Court in Wilmington, Del.

Nama decided to enforce loans of €77 million against businessman Harry Crosbie because he failed to disclose substantial assets, including three apartments in the south of France, when asked to provide details of all assets held by himself and his family, the Commercial Court heard yesterday. Mr Crosbie incorrectly told Nama he had no uncharged assets when the agency provided €32 million in taxpayer’s money to complete the Point Village development when, in fact, Mr Crosbie did hold unencumbered assets, Mr Justice David Keane was told, the Irish Times reported.

Permanent TSB has in recent days invited corporate advisers to pitch to sell two of its loan books with a face value of €2.5 billion. It has invited tenders from accounting firms and corporate advisers to sell its €2.1 billion Irish commercial real estate (CRE) book and its €465 million Springboard Mortgages subprime portfolio, the Irish Times reported. In March, State-owned Permanent TSB said its strategy was to sell the two businesses either this year or in early 2015.