Wednesday 1 March 2017

Copies of Quinn papers given to lawyers

Ronald Quinlan

Ronald Quinlan

COPIES of documents that could prove crucial to the enforcement of personal guarantees given by the family of Sean Quinn over borrowings of €2.34bn from Anglo Irish Bank have been given to the High Court and lawyers for the former billionaire, the Sunday Independent has learned.

Questions over whether the money could legally be recovered by the bank had been raised last Monday in the High Court by lawyers for the Quinn family as they brought legal proceedings claiming the loans had been issued for the illegal objective of market manipulation to support Anglo's share price.

Mr Justice Peter Kelly noted that none of the guarantees provided for the loans were dated, while copy documents of two personal guarantees in the names of Aoife Quinn and Sean Quinn Jnr were unsigned. In pressing the claim, the Quinn family is seeking a declaration from the court that their undated guarantees provided to Anglo over the liabilities of several Cyprus-registered companies are invalid and unenforceable.

The Sunday Independent has learned from informed sources at Anglo that copies of all the signed guarantees relevant to the case and evidence of when they were given has now been presented to all the relevant parties.

Last Monday, Mr Justice Kelly consented to having the Quinn action transferred to the Commercial Court, with a view to having the case heard in full early next year.

The Quinn family owes Anglo Irish Bank almost €2.9bn in total. The €2.34bn at issue in this case relates to loans obtained by the Quinns to support their investment in Anglo shares and their losses in the 2008 banking crash.

The Quinns claim that these loans were only given to them on the condition that they be used to support their CFD (Contracts For Difference) positions in Anglo shares. The Quinns further claim that the loans were "manifestly improvident and/or unconscionable when executed" as they were given to support Anglo's share price when the bank knew its financial position was precarious, while they did not.

Interestingly, Sean Quinn is currently not a party to the action, which is being taken by his wife, Patricia, and their five children Aoife, Colette, Brenda, Ciara and Sean Jnr. Given his central role in the Quinn business, however, it is likely that Anglo Irish Bank will seek to have Mr Quinn drawn into the case.

Sunday Independent

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