Quinn administrators’ fee cut 20%

The President of the High Court has cut by 20% the fees sought by the joint administrators of Quinn Insurance Ltd (QIL).

The administrators, Michael McAteer and Paul McCann had sought court approval for the payment of about €2.75 million plus expenses for costs they incurred in the administration of the company between Aug 1 and Nov 30, 2011.

Mr Justice Nicholas Kearns yesterday said he was satisfied to approve the fees sought by the administrators, both of the accountancy firm Grant Thornton who the court said were each charging €475 an hour, less a 20% reduction.

The judge approved what were previously described as “substantial” fees being sought for the costs related to the sale of QIL, including fees charged by Macquarie Capital Europe Ltd.

The merchant banking firm was hired in June 2010 by the joint administrators to help sell QIL, which was purchased last year by the Liberty Mutual/ Anglo Irish Bank joint venture.

The amount charged by Macquarie was not disclosed as that information has been deemed as commercially sensitive. The judge said he was imposing the 20% reduction for a number of reasons including that the “difficult and completely unprecedented” situation that existed at QIL when the administrators were appointed no longer prevailed.

The fees charged for the August to November 2011 period were based on similar rates previously approved by the High Court. A lot of the work conducted by the joint administrators had now become routine, he added.

The sale of the company to the joint venture, the judge noted, had significantly reduced the burden on the administrators.

He found there had been a repetition in regards to some of the work carried out by the administrators and Macquarie.

Mr Justice Kearns said he was also taking into account other factors, including the sharp downturn in Ireland’s economic situation since the appointment and that in cases before the Commercial Court judges had cut administrative fees sought by professionals.

He said he was satisfied to approve the fees sought by Macquarie after a peer review said the amounts sought were proper and fair.

He also said he was satisfied to approve the legal fees incurred by the administrators during the August to November period.

Picture:Quinn Insurance, Blanchardstown