Anglo to call in €2bn Quinn loan guarantees

WITHIN a fortnight, Anglo Irish Bank is to call in almost €2 billion in personal guarantees given by Sean Quinn in a court case which may result in the largest ever judgment in Irish legal history.

Anglo went into the High Court on Wednesday and lodged High Court documents detailing its decision to call in the personal guarantees given to the former head of Quinn Group.

According to RTÉ’s Prime Time, the loans include one of €1.3bn, one of $820m (€600m) and one of 200m yen (€1.9m) all taken by Mr Quinn personally.

They are also calling in personal guarantees by the 64 year old and his wife for a home improvement loan of €3.5m.

In all, the Quinn family have borrowed €2.8bn from Anglo Irish Bank but there is no sign of that massive amount being repaid.

By taking Mr Quinn to the commercial division of the High Court, the bank is unlikely to secure the almost €2bn in personal guarantees.

However, the likelihood is that, in time, it will result in Mr Quinn and his family being declared bankrupt.

Meanwhile, it also emerged on Prime Time last night that a new tax investigation is being carried out into parts of the Quinn Group of companies, relating to financial transactions made while Sean Quinn Snr was still at the helm.

That investigation centres around the movement of profits and losses between different company accounts in different jurisdictions.

The company’s new management are reported to be in advanced negotiations with the Revenue Commissioners for a voluntary tax settlement which would be a one-off payment to cover all potential liabilities.

Prime Time said Sean Quinn had denied this, saying there were no problems within the Quinn Group.

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