Irish Bank court approves $7.1 million sale of Florida property assets

By Kali Hays

New York, July 21 – Irish Bank Resolution Corp. Ltd.’s foreign representatives, Kieran Wallace and Eamonn Richardson, received court approval to sell company assets related to Channelside Bay Plaza in Florida to CBC Development LLC for $7.1 million, according to a Monday order with the U.S. Bankruptcy Court for the District of Delaware.

CBC will assume all of the rights, liabilities and accrued interests related to the Channelside property.

Specifically, the assets include a loan related to real estate financing from March 2006, in which the company is now owed in excess of $40.6 million, and ownership of a ground lease that is part of a 2010 settlement agreement with Channelside.

As previously reported, since September 2013, the Tampa Port Authority, owner of the Channelside premises, has invoiced Irish Bank for $715,662 in expenses related to the Channelside property and has identified $6.8 million to $8.1 million in alleged property issues in need of remediation, according to the motion.

The sale is set to close no later than 14 days after entry of the sale order.

In a pre-bankruptcy attempt to sell the assets, Irish Bank received a $7 million offer from Liberty Channelside, LLC for the lease assets and a $5.5 million offer for the loan assets. The Port Authority refused to approve Liberty as assignee under the ground lease, and the matter is currently pending adversary proceeding in the Delaware court.

The court also denied a proposed $5.75 million settlement between the Tampa Port Authority and the company in February and directed the foreign representatives to conduct a competitive sale process.

According to the order, CBC has been able to negotiate a settlement between the parties resolving all litigation related to the refused lease assumption and all parties have agreed to sign a note prohibiting comments to the media on the settlement.

Irish Bank Resolution, a Dublin-based successor to Anglo Irish Bank, filed for bankruptcy on Sept. 17, 2013. The Chapter 15 case number is 13-12159.

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