The Asset Resolution Corporation (ARC), a new company set up by former Bank of Scotland Ireland chief Mark Duffy and investor Kevin Warren, will lay out its plans for the Irish distressed debt market tomorrow.

The company has been in talks with all of the foreign-owned banks in Ireland and has received expressions of support from a number of financial institutions.

ARC hopes to take over a large portion of their debt and in so doing become a multi-billion euro company. It is likely to work with NAMA on loans where there is property owned between Irish and overseas banks.

Technically no banks are signed up to NAMA yet as the NAMA legislation has not been passed, but foreign-owned banks will not be covered, since they are to receive assistance from other governments.