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Friday 9 December 2016

Quinn family accuses Anglo of breaching court orders

FINANCE

Published 21/10/2011 | 05:00

THE Quinn family has accused Anglo Irish Bank of breaching court orders that banned the bank from interfering with key assets in a €500m international property portfolio.

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Documents sent by the Quinns' lawyers to Anglo's agents yesterday claim the bank has defied a Cypriot court order by "aiding" a named individual who called a directors' meeting for one of the Quinn property companies.

The Quinns say the convening of the meeting "constitutes and amounts to a contempt of court" and "violates" the terms of an injunction handed down by a Cypriot court in July. That injunction temporarily prohibits Anglo and its agents from appointing directors to the contested companies or interfering with the running of those companies.

"We will proceed to file the necessary applications before the Cyprus Court to bring its attention to the above action of Mr [Robert] Dix [who allegedly called the directors' meeting] ... and request his punishment, as well as the punishment of Anglo, due to the fact that it appears Anglo is aiding Mr Dix to breach the Cypriot injunction."

The Quinns' lawyers also warned the six individuals who were invited to the meeting that they would be held "personally liable" for violating the injunction if they attended the meeting.

Sources close to Anglo Irish Bank stressed that the bank itself is not on the board. The directors are expected to argue that the company in question has a properly constituted board which is entitled to call meetings.

Key assets

Yesterday's dispatches come less than a week after Anglo told the Cypriot courts that the Quinns had been unlawfully transferring value out of the property companies to "denude" the bank of its rightful claim on key assets.

The bank claimed that a nephew of patriarch Sean Quinn got a $180m company in exchange for €1,000, while the businessman's son-in-law got a $13m company in exchange for a €380 laptop.

Anglo believes it is entitled to the value of the property empire because the companies and assets formed part of the security given for some €2.8bn of loans advanced to the Quinn family and companies.

The Quinns argue that the loans are invalid since they were granted for the illegal purpose of propping up Anglo's own shares, by financing Sean Quinn's punt on the banks' stock.

Anglo has petitioned the courts in Ireland to deal with the matter and has secured a temporary order banning the Quinns from interfering with the companies until the case is resolved.

Irish Independent

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