Quinn accused of ‘bankruptcy tourism’ for filing in North
Mr Quinn voluntarily filed for bankruptcy in Belfast last month, claiming his business was based in Co Fermanagh.
His multibillion-euro empire collapsed over the last two years on the back of massive stock market gambles on Anglo’s share price.
The 65-year-old has recently been hit with two separate judgments of €1.74 billion and €416 million by the Commercial Court in Dublin over loans from the now nationalised lender.
As a bid by the bank, now called the Irish Bank Resolution Corporation (IBRC), to overturn his bankruptcy opened in the Chancery Court in Belfast, its lawyer said Mr Quinn’s application fell short of European regulations around bankruptcy.
Gabriel Moss said: “As far as the bank is concerned, this is a form of bankruptcy tourism by Mr Quinn.”
The court heard Mr Quinn is now based in an office in an industrial estate in Derrylin village in Co Fermanagh.
Mr Moss claimed that Mr Quinn had failed to give full disclosure to the courts at the time of his bankruptcy application.
But he said the bank’s case centred on claims Mr Quinn did not inform IBRC of his new office.
He told Mr Justice Donal Deeny that according to European directives around bankruptcy, a businessman’s base or “centre of main interest” must be known or “ascertainable” to other parties, including creditors.
According to documents read to the court, Mr Quinn had recounted how he drove around the back of the office to avoid drawing attention to himself.
Mr Moss said Mr Quinn was entitled to keep the location of his office private, but could not then claim it was ascertainable to his sole creditor, the IBRC.
He also challenged whether the office represented Mr Quinn’s centre of main interest, arguing that he was not conducting business there, but was instead considering his legal affairs.
Mr Moss said the supposed absence of business activity also fell short of European rules, therefore meaning his base was his home address in Co Cavan.
The judge said: “I suppose the contrary argument might be that the litigation is all about his business.”
But Mr Moss, who referred to Mr Quinn’s “alleged new office” throughout, noted that in documents to the court Mr Quinn had described himself as unemployed.
“No one would say, ‘I am a self-employed litigate’,” Mr Moss said, adding of the Derrylin office: “It was not ascertainable and not ascertainable by his own word.
“If you hide something you cannot turn around and say it is ascertainable.”
Mr Moss also questioned a lease linked to the premises, dated from earlier this year.
Mr Quinn has challenged the bank’s claims on his debts, has said he is the victim of a vendetta and that he has only €11,000 in the bank.
At the time of his bankruptcy, IBRC said Mr Quinn and his family owed the Irish state €2.9bn.
Mr Quinn lost control of his business in April. But he claims to have set up his new Derrylin office, from where he said he is considering new ventures.
The hearing continues.
