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Anglo Irish BankCpLd (31SV)

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Tuesday 08 February, 2011

Anglo Irish BankCpLd

Direction Order

RNS Number : 9036A
Anglo Irish Bank Corp Ltd
08 February 2011
 



Anglo Irish Bank Corporation Limited - Direction Order

 

Anglo Irish Bank Corporation Limited (Anglo) has today (8th February 2011) received a Direction Order from the High Court to;

 

(i)       Begin a process, in accordance with EU State aid rules, to transfer deposits and assets held by Anglo to a third-party financial institution or institutions; and

 

(ii)      Take the initial steps to implement the restructuring plan as submitted to the European Commission at the end of January this year. 

 

This Order facilitates the Minister's plan to restructure Anglo, which is in accordance with the provisions of the EU/IMF Programme of Financial Support for Ireland.

 

The Direction Order was granted under the Credit Institutions (Stabilisation) Act 2010.   

 

Auction process

 

The NTMA will immediately commence an auction process to invite interested, fully-regulated financial institutions to tender for Anglo's deposits.  It is intended that this process will conclude as quickly as possible.

 

Restructuring Plan

 

The initial steps to implement the restructuring plan will involve the deposit transfer process described above and the preparation of Anglo's loan book for its orderly work out, in a manner which minimises losses. The process will also involve the amalgamation of Anglo and Irish Nationwide Business Society (INBS) into a merged entity regulated by the Central Bank of Ireland, subject to EC approval of the Restructuring Plan.

 

The Direction Order begins the process of restructuring Anglo as envisaged in the restructuring plan in a manner that benefits from necessary legal protections and is recognised in other EU Member States. 

 

Depositors

 

Deposits will be transferred in a seamless manner and no action will be required by depositors. It should be noted that the position of depositors in Anglo remains fully secure and that any transfer will take place and be accepted by another institution on the basis of the existing terms and conditions.  Depositors will also continue to have full access to their funds during and after the auction process.

 

Staff

 

The position of employees in the business areas of Anglo that will be affected by the transfer of deposits and assets will be safeguarded in accordance with applicable employment legislation.

 

 

Commenting on the Direction Order, Mike Aynsley, Chief Executive Officer of Anglo said: 'Today's High Court Direction Order is the first step taken by the Minister for Finance in relation to the restructuring of our Bank.  It is a necessary step in enabling the possibility of a wider restructure of the banking sector to happen. The Board and I welcome today's Direction Order which brings further clarity about the future of the Bank. We acknowledge the continued support of the State and will comply fully with the Direction Order.'

 

 

Ends

 

 

For further information, please contact:

 

Billy Murphy / Martha Kavanagh

Drury

Tel: 01 260 5000

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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