Friday 21 July 2017

Russian court to rule on bankruptcy in Anglo-Quinn global battle

FINANCE

Laura Noonan

Laura Noonan

A RUSSIAN court will today decide on a bankruptcy application for one of the companies at the heart of a €500m international property row between Anglo Irish Bank and the Quinn family.

The company, Finansstroy, has brought a petition for its own bankruptcy before the court, but Anglo Irish Bank will today argue that its position as a creditor would be adversely impacted by the bankruptcy.

The nationalised bank has spent the last three months trying to take control of a labyrinth of international property companies, including Finansstroy, triggering legal battles in Cyprus, Sweden, Russia and Ireland.

Anglo has told courts in Ireland that it should have control of 100pc of Finansstroy's shares, but that the Russian company recently issued a small number of new shares to Peter Quinn, a nephew of Quinn patriarch Sean Quinn.

Earlier this week, the bank obtained an 'interlocutory order' banning the Quinn family from interfering with the share structure or assets of any company under Anglo's control.

The order, which remains in place at least until September 9, is expected to be referenced in tomorrow's courtroom showdown in Russia.

Anglo and the Quinns are also gearing up for a Cyprus hearing on Tuesday, where the nationalised bank is expected to argue against the Quinns' efforts to have the property case heard in Nicosia.

The Quinns have already got a temporary order from the Nicosia courts restraining Anglo from interfering with key international property assets and companies.

The family argues that the Nicosia court has jurisdiction as several of the companies involved are based in Cyprus, and key agreements include an "exclusive jurisdiction" clause.

Anglo disputes this.

Irish Independent

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