State to receive €275m from Anglo's liquidation

Finance Minister Michael Noonan says liquidation has "exceeded our expectations"

The State should receive €275 million by the end of 2016 from the liquidation of the former Anglo Irish Bank.

The special liquidators of the now-IBRC are planning to pay an interim dividend of 25% of claims made by creditors.

These unsecured creditors include the State, credit unions and local authorities.

Minister for Finance Michael Noonan has stated that creditors should eventually be paid between 75% and 100% of what they are owed.

There are no plans to pay remaining Anglo bondholders, though if there are remaining funds they could be distributed to junior bondholders.

A report on the progress of IBRC's special liquidation published today said:

"It is anticipated that a dividend will be available for unsecured (but not subordinated) creditors but it is difficult to ascertain the quantum at this stage as the outcome of certain claims have yet to be determined".

Minister Noonan commented:

"The ultimate level of dividend paid to each creditor cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and the other contingent creditor claims which may crystallise, including those from litigation, are known".

The State paid out approximately €1.1bn to IBRC customers whose savings were guaranteed at the time of liquidation.