Monday 23 January 2017

Sean Quinn's wife and children may be made bankrupt over Anglo debt

Published 12/10/2011 | 05:00

ANGLO Irish Bank yesterday gave the strongest indication yet that it will bankrupt Sean Quinn's wife and children for failing to repay €2.8bn worth of loans.

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In an affidavit opened by a Cyprus court, the nationalised bank said there was a "strong possibility" that Mr Quinn's five children and wife Patricia would "soon be declared bankrupt".

The statement came as Anglo alleged for the first time that Sean Quinn would have committed a "criminal offence" under Swedish law if everything the Quinn family has told the court was true.

A spokesman for the Quinn family last night declined to comment on the latest allegations, which come as the family and the bank battle it out for control of a €500m international property empire.

Sources close to the Quinn family strongly rejected any suggestions of criminality.

"Such spurious allegations will be seen for what they really are, yet another attempt on the part of Anglo Irish Bank to blacken the name of Sean Quinn and his family," a source added.

Sean Quinn's five children have each given personal guarantees for about €77m of their borrowings, while his wife Patricia has personal guarantees for another €102m.

The Quinns have already taken legal action against the validity of the loans, claiming they are "unenforceable" since the €2.8bn was loaned for the "illegal purpose" of propping up Anglo's own share price.

Allegations

In yesterday's affidavit, Anglo strongly denied this claim.

The affidavit also rejected the Quinns claim that the international property empire was merely held "in trust" for the Quinns by companies that Anglo has seized, so the family would remain the beneficial owner of the properties even if the bank owned the properties.

Anglo yesterday said that Mr Quinn was listed as a signatory on both "the purported trust deeds" and the share pledges that gave Anglo a claim on the companies.

"In approving the signature of the share pledges, he authorised the company to give a representation and warranty that he must have known to be false if those trust deeds are valid," Anglo executive Richard Woodhouse told the court.

He added: "I am advised that this would be a criminal offence under Swedish law."

Irish Independent

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