IBRC accuses Quinn of 'bankruptcy tourism'

The IBRC (formerly Anglo) has accused former tycoon Sean Quinn of “bankruptcy tourism” for opting to turn to the courts in Northern Ireland to be declared a bankrupt.

Mr Quinn voluntarily filed for bankruptcy in Belfast last month, claiming his business was based in an industrial estate in Co Fermanagh.

The businessman’s multibillion-euro empire collapsed over the last two years on the back of massive stock market gambles on the Anglo's share price.

The 65-year-old has recently been hit with two separate judgements of €1.74bn and €416m 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 QC told the court: “As far as the bank is concerned, this is a form of bankruptcy tourism by Mr Quinn.”

The court heard that Mr Quinn - once a magnate with international interests in cement, insurance, hotels and industry - is now based in an office in an industrial estate in the village of Derrylin in Fermanagh.

Once the richest man in Ireland and famously protective of his privacy, he was met by photographers and camera crews as he arrived to attend the court proceedings.

He sat in the courtroom throughout the hearing, which continues tomorrow and which could last until Wednesday, but both sets of lawyers have now indicated it is unlikely he will be called to testify.

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.

The lawyer told Mr Justice Donal Deeny that according to European directives around bankruptcy, a businessman’s base, or so-called “centre of main interest”, must be known to 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 and to keep his affairs private.

Mr Moss said that 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 that his base was in fact 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 throughout to what he described as Mr Quinn’s “alleged new office”, noted that in documents to the court Mr Quinn had described himself as unemployed.

The lawyer added: “No one would say: 'I am a self-employed litigate'.”

Mr Moss said of the Derrylin office: “It was not ascertainable and not ascertainable by his own word.”

He added: “If you hide something you cannot turn around and say it is ascertainable.”

Mr Moss also questioned a lease linked to the Derrylin premises and dated from earlier this year.

Mr Quinn has challenged the bank’s claims over his debts and has said he is the victim of a vendetta.

He has claimed he only has €11,000 in the bank.

At the time of his bankruptcy the IBRC said Mr Quinn and his family owed the Irish state €2.9bn and challenged his claim of having a UK business base.

Mr Quinn lost control of his business in April. He claims to have set up his new Derrylin office where he said he is considering potential new ventures.

Before his downfall, his story was a classic rags-to-riches tale.

He began his career with a £100 loan to dig gravel on his father’s farm.

But at the height of his success, the man dubbed “The Mighty Quinn” was worth a reputed €4.72bn.