Irish Bank Resolution Corp. Files for Bankruptcy in U.S.Phil Milford and Joe Brennan
Irish Bank Resolution Corp. of Dublin, formerly Anglo Irish Bank Corp., filed a Chapter 15 bankruptcy petition in Delaware yesterday to protect U.S. holdings, listing more than $1 billion each in assets and debt.
Ireland’s government put the nationalized lender Irish Bank Resolution Corp. into liquidation in February under a plan to restructure its 34.7 billion-euro ($46.3 billion) bailout. The previous administration gave the bank through 2020 to wind down.
The bank was seized by the state in January 2009 as its bad loans soared following the collapse of the nation’s real-estate market. Its remaining loans were valued at 16.6 billion euros in June 2012, excluding 10.9 billion euros of provisions for future losses, according to its most recent set of public accounts. Its peak loan book stood at over 70 billion euros in 2008.
Other names used by the bank in recent years, according to court papers, were Anglo Boston, Anglo Chicago Corp., Anglo Washington and Irish Nationwide Building Society.
Chapter 15 shields foreign companies from U.S. lawsuits and creditor claims while a company continues the process abroad
The Anglo Irish bank was founded in 1964, and was once the third largest financial institution in Ireland, according to a filing by special liquidator Kieran Wallace, based in Dublin.
He said Irish Bank Resolution was created in July 2011 under the Credit Institutions Stabilisation Act as a successor to Anglo Irish Bank.
Court papers show the bank has outstanding unsecured notes of $165 million due in 2015 and $35 million due in 2017.
Helping to precipitate liquidation were “a decline in property prices” and “illiquidity in global wholesale funding markets,” according to Wallace.
The case is In re Irish Bank Resolution Corp. Ltd.(in Special Liquidation), debtor in foreign proceeding,13-bk-12159, U.S. Bankruptcy Court, District of Delaware (Wilmington).