Quinn lobbyists propose Government bond

PRO-Quinn Insurance (QIL) lobbyists have proposed the issuing of a Government bond as a way of raising the funding to facilitate its “return to normal trading”.

A spokesperson for Concerned Irish Business – the lobby group made up of a number of border-community firms – said the best solution is for “an institution to issue the required funding and the only way this can be achieved in the present financial climate is through the issue of a bond or surety from the Government”.

He added that this would facilitate QIL to return to normal trading and – over the next seven years – “generate the profits and potential company value to repay the Quinn family debt with Anglo Irish Bank, including interest”.

Concerned Irish Business met with the Financial Regulator, Matthew Elderfield, yesterday to propose its solution and hopes to meet with Finance Minister, Brian Lenihan “in the coming days”.

While the Regulator declined to comment on yesterday’s meeting, the lobby group itself said its talks had been “constructive”, with both sides expressing their views “openly and frankly”.

They added that Mr Elderfield “made it very clear” that he wasn’t going to compromise on his requirements regarding solvency, management and corporate governance at Quinn Insurance, but that he “maintained an open mind” on all options for the company.

Concerned Irish Business said that the job losses at Quinn – particularly the 640 relevant to the Republic – would cost the Irish taxpayer €130m per year, if QIL was to continue on its present course of action; with that cost rising to €360m if it were to cease operating here.

Meanwhile, regarding the possible sale of QIL, the company’s administrators have completed the drawing up of the information memorandum that is likely to be sent to the 48, or so, interested parties – but is currently being advised by investment bank Macquarie over the sales process.