Cerberus is deeply concerned by the allegations and inferences that
have recently been made in Northern Ireland related to the sales
process for Project Eagle. First and foremost, Cerberus has not been accused of any wrongdoing. The issues, as we understand them, relate to the potential misappropriation of funds within a Northern Ireland law firm, Tughans. Those issues should not be conflated in any way with the integrity of the Project Eagle bidding process or Cerberus participation in it. We have made it clear to all parties that we welcome any investigation into these concerns and will fully cooperate with any legal or regulatory authority. We are meticulous in our approach to business and have zero tolerance for inappropriate or unethical activities. We insist on the same high standards of conduct from our advisers. In this matter, as is our standard business practice, we codified these expectations in our engagement letters with our outside advisers so that there was no room for interpretation. Specifically, we engaged Brown Rudnick as our lawyers to supplement our primary legal team from Linklaters and assist us in our bid for Project Eagle. We have had a long-standing relationship with Brown Rudnick in the United States. Brown Rudnick informed us that they wanted to retain Tughans as a Northern Ireland based legal firm to supplement its work. Brown Rudnick informed us that they wished to split their professional fees with Tughans. Cerberus never engaged Tughans directly as counsel and no fee from Cerberus was paid to Tughans. In our engagement letter with Brown Rudnick, we received certifications, representations and warranties covering a number of issues including compliance with all laws and regulations including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. We insisted Brown Rudnick require Tughans be bound by the same standards and we confirmed that Brown Rudnick received the same explicit assurances from Tughans.
During the bidding process, NAMA requested that we confirm to it
that no fee, commission or other remuneration or payment was payable to any current or former Board member of NAMA, any current or former executive of NAMA or any current or former member of an advisory committee of NAMA in connection with any aspect of our participation in the tender process. After receiving confirmation from Brown Rudnick, and a similar confirmation by Tughans to Brown Rudnick, we provided such confirmation to NAMA. Consequently, to our best knowledge, no improper or illegal fees were paid by us or on our behalf by our advisors. As to the awarding of Project Eagle, we understand from NAMAs public statements that we were the highest bidder in a structured process overseen by Lazard, an internationally respected investment bank. We conducted ourselves in accordance with the highest ethical standards in the bidding process and we have done the same in connection with our ownership and management of the Project Eagle portfolio. We have no knowledge or reason to believe that process was conducted with anything but the utmost integrity. We are monitoring the situation closely and will be active in communicating the care we took with this process and in vigorously defending any suggestion to the contrary.