Quinn: From rich list to risk of bankruptcy

FOUR years ago Seán Quinn was Ireland’s richest man. Now he faces the prospect of bankruptcy.

Mr Quinn and his family owe Anglo Irish Bank almost €2.9 billion and the bank has moved to oust him from the company he founded.

It is estimated that at least €2bn of what the Quinn family owes Anglo could be written off.

The bank has appointed a share receiver to take control of the Quinn family’s stake in Quinn Group (ROI) Ltd, which is the ultimate parent company of the Quinn Group.

Separately, top US insurer Liberty Mutual has been chosen as the preferred bidder for Quinn Insurance, which was placed in administration in March last year. Anglo will retain a minority shareholding in the new firm but it will have no dealings in the day-to-day management.

Despite fears of job losses, Finance Minister Michael Noonan said that all 1,500 jobs in Quinn Insurance will be retained under the deal.

The Quinn family said it is considering the announcement from Anglo and would be making no further comment.

Anglo chief executive Mike Aynsley said there is “no doubt”, however, that there will be some write-off of the near-€2.9bn it is owed by Mr Quinn and his family.

“We’ve got to make our decisions in the best interest of the taxpayer and the best interests of the bank,” said Mr Aynsley.

Other lenders to the Quinn Group are owed about €1.28bn.

Bankruptcy expert Bill Holohan said there is a possibility that Mr Quinn — because of who he is and the scale of his debts — could go to Britain to seek bankruptcy.

Quinn Group racked up the debt mainly due to Mr Quinn’s purchase of a more than 20% stake in Anglo Irish through contracts for difference, which allow a punt on a security without directly owning it. The Quinn family’s stake in Anglo is worthless following the 2009 nationalisation of the bank.

Before Anglo’s nationalisation, Mr Quinn had off- loaded half his stake to 10 major clients of the bank. Anglo lent the clients the funds to buy the shares in a transaction now being investigated by the Director of Corporate Enforcement.

Anglo has appointed Kieran Wallace, a partner at KPMG, as share receiver over shares held by the Quinn family in the Quinn Group. He will oversee the appointment of a new board of directors. The chairman of the Quinn Group, Pat O’Neill, said Mr Quinn has earned widespread recognition for bringing much-needed employment to rural border areas.