Anglo set to exclude family in insurer rescue bid
Published 09/04/2010 | 05:00
ANGLO Irish Bank is prepared to exclude Sean Quinn and his family from any role in the nationalised bank's rescue plan for the embattled Quinn Insurance.
The position emerged after the Financial Regulator expressed grave concerns about any potential role for the Quinns in an Anglo solution.
Mr Quinn and his family are now facing the real prospect of having no role in the wider Quinn companies as well, although this was described as a "sensitive" issue by bank sources last night.
Lenders recognise the experience and expertise of Mr Quinn in some of the businesses he built up since the 1970s, but any role he has in the business in future is likely be extremely small.
Anglo has told the regulator it is prepared to invest more than €100m to help Quinn Insurance meet the regulator's solvency margin, but this requires some of the existing loan guarantees to be released by other lenders.
Intensive talks between Anglo, other lenders and the regulator are expected to continue today and over the weekend as agreement is sought on a complicated deal to stabilise the Quinn Group of companies.
The role of Mr Quinn in the wider Quinn Group remains a key concern, as does the state-aid implications of Anglo taking over the company.
The regulator is understood to have a number of concerns about Anglo's proposal.
The complexity of the deal, which hinges on agreements between 20 bondholders and eight banks, is one problematic issue. A 100pc agreement from the bondholders is required.
Another concern is whether any deal would raise potential state-aid issues with the European Commission, something international insurance companies are already expressing concerns about. The regulator is concerned that Anglo's draft proposal would include Mr Quinn's family retaining some stake in the group.
Another concern is whether taking a majority stake in the Quinn group would be "prudent" for Anglo, since the regulator is also responsible for overseeing the bank's robustness. The regulator is also concerned that Anglo would do a deal on a less favourable basis than a "dispassionate" buyer, putting further strain on the bank's balance sheet.
Anglo has yet to make firm proposals about how much it would inject into Quinn Insurance. The regulator is expecting to get detail on this at a meeting tomorrow. The administrators are understood to have identified some opportunities to optimise operations at the Irish business.