Anglo to sign fresh deal on Quinn Group's €1.3bn debt
Published 14/10/2011 | 05:00
ANGLO Irish Bank and the Quinn Group's lenders are hoping to ink a fresh deal for the conglomerate's €1.3bn debt pile by the end of the day.
Sources last night said there was "broad agreement" on the major elements of the deal and that resolution on the final elements "looks possible" today.
The Irish Independent understands the new agreement will see Anglo cede key vetoes on the sale of international assets in the Quinn Group, but that vetoes on the Irish businesses will remain largely intact.
The ownership of the Quinn Group will remain 75pc with Anglo and 25pc with the bondholders.
The news comes a month after "challenging" trading at the Quinn Group prompted efforts to revise an April deal that would have left the core Quinn businesses with €750m of debt while 'non-core' took the remaining €550m.
Proposals put before the bondholders envisage as little as €400m of debt being left with the core businesses, with €900m shifting to the 'non-core' structure, where lenders have a smaller chance of getting their money back.
Anglo has ruled out putting in any fresh cash, and is instead conceding some of the "vetoes" it was granted in the April version of the deal.
Most of the group's 90 bondholders are understood to have taken a "pragmatic" stance on negotiations, which began after the Quinn Group admitted that its 2011 earnings would come in at €80m and not the €105m that had been expected.
Three large holders -- hedge funds Strategic Value Partners and Silver Point and investors represented by Barclay's -- have resisted and are pushing for more concessions.
Anglo wants to do a deal by this weekend to clear the way for the group to change hands at the end of the month, on the same date as Quinn Insurance is taken over by Anglo and US insurer Liberty Mutual.
The two sales are tied together because the Quinn Group bondholders are also agreeing to release their guarantees on the insurer's assets.