IBRC Liquidation: What Happens to outstanding litigation (IBRC sueing & being sued)?

[ajapale]

What happens all those courtcases where IRBC are being sued or are sueing? Do they go into abeyence?

 

[Dermot]

From listening to and reading comments in the media, litigation will continue as normal. Nothing in that regard is supposed to have changed.

 

[ajapale]

But how can an entity that no longer exists sue (or be sued)?

 

[Dermot]

All I gathered from media comments on this aspect of it was that it was provided for and that NAMA would be taking on this aspect of it. I suppose IBRC was able to continue ANGLO's problems.

 

[principle1]

Sorry to piggyback on your thread but I don't see one covering my query and as it is related to the whole IRBC Liquidation I was just wondering if anyone knows what will happen to domestic mortgages with IRBC will they now be handed over to NAMA ? If so as I understand it NAMA isn't a financial institution but more a Debt Collection Agency dealing mainly with Commercial Debts.

 

[markpb]

But how can an entity that no longer exists sue (or be sued)?

I suspect that once the special manager is appointed, IBRC will continue to exist as a shell of a company for a very long time and this is how continued legal action will be facilitated. I'm struggling to find a link right now but I read a story in the papers last year where the High Court approved the salary being paid to the special manager and his staff of ICI for 2013.

Edit: found it but it was administration and not liquidation so maybe the same thing won't apply.

THE PRESIDENT of the High Court has cut by 25 per cent the €480 per hour fees sought by the administrator of insurance company Icarom plc and also cut the average €330 hourly fees for his staff after noting “a great deal of public disquiet at the level of fees charged for this type of work”. The fees sought were not objected to by the Central Bank.

ICI was placed in administration in 1985, when William McCann was appointed administrator. In 1990, ICI changed its name to Icarom plc and Mr O’Connor was appointed administrator. Donal O’Connor was appointed Icarom administrator in 1990 and, after he retired in 2008 as a partner in accountancy firm PricewaterhouseCoopers in 2008, the Department of Finance agreed he would continue in that role with the assistance of PwC staff.

For 2011, Mr O’Connor claimed about €291,000, plus VAT, as remuneration for himself and his staff for some 794 hours worked. That included €96,480 personal remuneration for 201 hours worked. Other reports indicated some €400,000 was being retained to cover the remuneration of the administrator and his staff for the period from February 8th, 2011, to January 10th, 2012.

In the report for the period to the end of 2011, the administrator said he was hopeful a successful transaction could be completed in 2012 and work was continuing to resolve two remaining key issues.

[broken link removed]

 

[mercman]

On the same topic but slightly away from the thrust of this thread refers to recent articles submitted to clients of IBRC, and well documented in the British and Irish press last weekend, concerns the investigation in the UK by the Financial Authorities in the UK of 'Interest Rate Swaps'. This has the ability of costing many more billions to clients of Anglo especially. Anglo had the knack of forcing borrowers to fix loans for inordinate amounts of time, whether they wanted or not. The investigation in the UK bears relevance to loans set up by the UK operations of Anglo. From been present at a number of meetings last week, it has the relevance of costing a fortune.

And whilst not yet bearing any relevance yet to Ireland, the CB, would of had to commence its own investigation on the same grounds.

Was this the straw that broke the camels back, and forced the Government to pull the plug on the entire fiasco of Anglo.

Time will tell, as some and many of the persons effected by these failings, are heavy hitters.

 

[ajapale]

Two weeks later and I still cant see how the now defunct entity formerly known as IBRC can be sued or can sue anyone else.

What normally happens litigation when a company is liquidated?

 

[mercman]

What normally happens litigation when a company is liquidated?

There is absolutely nothing normal about this liquidation !! IMO this is liquidation by design. Suck and See as it gains momentum.

The strange thing is IBRC Assurance is not in liquidation, but if anyone is owed money, don't hold your breath.

 

[Bronte]

Two weeks later and I still cant see how the now defunct entity formerly known as IBRC can be sued or can sue anyone else.

What normally happens litigation when a company is liquidated?

Well I guess this is all new to us and we've never seen such a mess so it's like make it up as you go along, at least that's what it appears to me. I assume going forward we will learn more as courts make judgements.

I cannot see any point in continying to pay for litigation against a liquidated company. Liquidated generally means a company that has no money left and if there is any it will go to the the people that are most secured, that's bound to not mean ordinary people.

In relation to them suing someone who is not paying back their debts, well persumably the liquidater has the power to do so. Your debts don't die just because the company that owns the debt is in liquidation. That's my very simplistic take on it anyway.

Looking at it another way, if you owe say KBC a mortgage of 100K and you have savings in KBC of 90 and they go bust. You'd still owe the mortgage but you might have lost your savings of 90 (forget about the deposit guarantee for now). Most people assume the 90K savings would be offset against the 100K mortgage but not so.

Additionally IMO that only people on a winner here are the liquidators, lawyers etc as they recoup vast fees sorting out this mess, and they more they get the less left for everybody else.