Administrators of Quinn Insurance to be paid €738m from special fund
High Court President Nicholas Kearns has ruled that administrators of Quinn Insurance can immediately draw down €320m from the Insurance Corporation fund and a further €418m can be accessed following a further application.
This allows for the transfer of the group to US insurance company Liberty Mutual.
While the administrators are aware this will be a significant imposition on taxpayers, the move is necessary so all policy holders transferring to Liberty will be protected as well as employees, said senior counsel Denis McDonald.
The court was told that Quinn Insurance currently had a deficit of €851.5m while operating as a going concern.
However, if it was to be liquidated this would cost the taxpayer more than €600m.
Lawyers for the Minister for Finance consented to the decision.
Tomorrow the High Court president will hear an application by the administrators of the Quinn Insurance group to transfer the business to Liberty Mutual.