Ban on sale of property linked to Quinn

BANS have been extended on any disposal of property in Eastern Europe linked to troubled businessman Sean Quinn.

A judge at the High Court in Belfast granted continuing injunctions against creditors seeking to wind up a company which owns a Ukrainian shopping centre.

A similar order involving another Quinn Group property in Russia was also granted.

It means that injunctions obtained on behalf of the former Anglo Irish Bank last month will now remain in place until January 26. It also emerged that one of the orders was granted during a special court sitting after midnight on December 23.

The injunctions relate to a number of firms, including Lyndhurst Development trading as SA Demesne Investments Ltd, which is based in the British Virgin Islands.

Another of those involved is Galfis Overseas Ltd, based in Belize. The companies are believed to be major creditors of the Eastern European business ventures.

Mr Quinn, once Ireland’s richest man, declared himself bankrupt in Northern Ireland in November over an alleged €2 billion debt to Anglo, now renamed as the Irish Bank Resolution Corporation.

IBRC is currently locked in a legal fight to have that move annulled on the basis that the 65 year old’s main centre of interest is south of the border.

Mr Quinn was stripped of control of his manufacturing and insurance business empire last April.

A share receiver was appointed to Quinn Finance Holdings, which holds a number of property investments for the family.

It was on behalf of the newly controlled Quinn Finance that the injunctions were obtained.

They currently prevent Lyndhurst and Galfis from bringing any action over loan agreements associated with the properties in Ukraine and Russia.

However, Quinn Finance suffered a recent court setback in Ukraine over a shopping centre in Kiev. A judge agreed with Lyndhurst Development Trading that the owner of the shopping centre, Univermag, owes it $45m, meaning Univermag could be forced into bankruptcy with Lyndhurst Development Trading as one of its major creditors.

The two injunctions continued yesterday name Quinn Finance and Quinn Hotels Praha AS as plaintiffs alongside IBRC.

They state the defendants are restrained from taking any steps to sell, transfer or deal with any of the assigned loan agreements and/or any judgment of any court arising out of them. The injunctions compel the defendants to retain and hold money paid out to them.