Quinns say courts must lift orders freezing accounts

The family of bankrupt businessman Seán Quinn has claimed the insolvency of Irish Bank Resolution Corporation means the courts must urgently lift orders freezing their accounts below €50m each and preventing them transferring assets in their international property group.

Alternatively, the family say the special liquidators of IBRC must lodge up to $500m in court to meet any claim for damages should they win the case.

Mr Justice Peter Kelly in the Commercial Court said he would hear the matter next Monday.

Aoife Quinn said in an affidavit that it was clear from recent remarks of IBRC special liquidator Kieran Wallace any claim the Quinns may have on foot of the bank’s undertakings for damages would rank as “an unsecured debt which Anglo will be unable to satisfy”.

The freezing orders had caused considerable loss to her family and it was “no longer just, equitable or conscionable” that they remain in place, she said.

The orders had led to termination of standing orders and direct debits on the accounts of herself, her siblings, and other family members, which had led to non-payment of a range of expenses.

The “most striking example” was that mortgage payments on Seán Quinn Jr’s home were not paid, despite the fact the account from which those payments were to be made was in credit, she said. KBC Bank had appointed a receiver over that property, she said. They were also unable to contemplate business ventures, to maintain ordinary banking facilities and were delayed in getting the full legal advice necessary, said Ms Quinn.

The family claims the appointment earlier this month of liquidators to IBRC means it cannot honour its undertaking to pay them damages should it lose its case against them over alleged stripping of $455m assets from the Quinns’ international property group.