Further losses could emerge in Quinn case
Published 13/11/2011 | 05:00
After promising all and sundry that he and his family would repay "every cent" they owed, Sean Quinn filed for personal bankruptcy in Belfast on Friday, claiming to owe Anglo Irish €200m. However, with the Quinn-related debts amounting to at least €2.8bn, will the bankruptcy process uncover any further black holes?
Friday's move has been inevitable since last April when Anglo Irish, which claims that Mr Quinn owes it €2.8bn, seized control of the Quinn Group.
This followed on from the appointment of administrators to Quinn Insurance, Quinn Group's main cash cow, in March 2010.
The only surprise about last Friday's move was that Mr Quinn filed for bankruptcy in Belfast rather than Dublin.
By doing so he benefits from the UK's more liberal bankruptcy laws which allow a bankrupt to discharge their debts after one year as against 12 years in the Republic.
Since the seizure of the Quinn Group, Anglo and Mr Quinn have been engaged in legal trench warfare in several countries including Ireland, Cyprus, Sweden and Russia as the two sides battle for control of an eastern European property portfolio.
With Anglo due in the High Court next week seeking a judgement for €2.8bn on foot of personal guarantees which he gave to the bank, the game is up for Mr Quinn. Now the fear must be that, with Mr Quinn having filed for bankruptcy, further large losses will emerge.
Sunday Indo Business