Business Irish

Thursday 24 August 2017

Anglo adds trio to €2.3bn legal battle against Quinn family

Sean Quinn. Photo: David Conachy
Sean Quinn. Photo: David Conachy

Laura Noonan and Louise Hogan

ANGLO Irish Bank will seek "relief" against tycoon Sean Quinn and two of his key lieutenants if the Quinn family convinces a court that guarantees on €2.34bn of loans are "unenforcable", it emerged yesterday.

The bank's position was revealed as a court agreed to "join" Sean Quinn and former Quinn Group executives Liam McCaffrey and Dara O'Reilly to a legal battle between the Quinn family and the bank.

The five Quinn children are arguing that the loan guarantees which enabled Anglo to seize control of the Quinn Group are unenforcable since they were given for the "illegal" purpose of supporting Anglo's own share price.

The Quinns also say that they had little or no understanding of the implication of the guarantees when they were entered into.

Anglo vehemently denies the claim, but yesterday said it would seek "relief" against Sean Quinn, Mr McCaffrey and Mr O'Reilly in the event that the Quinns' case was successful.

The bank is expected to call the trio to the stand during the case, and question them on whether they purported to be acting for the Quinn family, with the full knowledge of the Quinn family, when the contested loans were granted.

In an affidavit asking for the three men to be joined to the case, Anglo executive Richard Woodhouse said the bank would argue the trio had a "duty of care" to the family members who they were negotiating on behalf of.

The application to join Sean Quinn, Mr McCaffrey and Mr O'Reilly was uncontested, and Mr Justice Peter Kelly agreed to it. The case is due to start in January.

Meanwhile, the bank and the Quinn family will square off in a Nicosia court room this morning as they battle it out for control of a €500m international property empire.

Anglo is hoping to convince the courts there to lift a temporary injunction restraining the bank from "interfering" with the property empire.

A decision could come as early as today.

Irish Independent

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