Quinlan to lose lavish lifestyle as NAMA vows to chase debts
Published 23/01/2012 | 05:00
FORMER tax inspector Derek Quinlan could lose his lavish lifestyle within months if NAMA makes good on its promise to use "all powers open to it" to ensure repayments of the financier's massive debts.
Weekend reports claimed that Mr Quinlan, who is believed to owe NAMA hundreds of millions of euro, is living it up in London with a €4,000-a-week house, flash cars and meals in posh hotels.
NAMA last night stressed that it had no role in financing Mr Quinlan's lifestyle, that it had already seized control of many of his "key assets", and that it would "use all powers open to it to secure maximum repayment of his debts".
Since Mr Quinlan granted personal guarantees for some of his borrowings, NAMA can pursue him personally if the sale of his assets fails to cover his NAMA loans, which once stood at close to €600m.
NAMA's powers allow them to first seek 'judgment' against a borrower, giving the agency a legal order compelling an individual to pay off loans. If the borrower can't comply, NAMA can then ask the courts to declare him bankrupt.
Depending on how the process plays out, NAMA could benefit from all of Mr Quinlan's assets and might even be able to get a slice of some of his future income.
Sources stressed that bankruptcy moves against Mr Quinlan were not imminent since he has been co-operating with NAMA and helping with the sale of certain assets, and that could be jeopardised by a rush to bankruptcy.
NAMA installed receivers over nine of Mr Quinlan's properties last April, including plush houses in Dublin's Ailesbury and Shrewsbury roads and office blocks elsewhere in the capital.
The debt agency also sold off a collection of Mr Quinlan's art for €1.9m with his co-operation.
"The agency is not funding any aspect of Mr Quinlan's lifestyle or any of his day-to-day expenses," a spokesman stressed last night.
The source of Mr Quinlan's income is unclear, but he is reportedly doing "asset management consultancy" work for the Barclay brothers.
Mr Quinlan recently ceded his 35pc voting rights in Maybourne Hotel Group to the Barclays, triggering legal action from Irish developer Paddy McKillen.
Even if NAMA was funding Mr Quinlan, its maximum €200,000-a-year salary wouldn't stretch to the €208,000-a-year rent that his Putney home is reportedly costing him.
One of the most prolific investors of the boom, Mr Quinlan founded Quinlan Private to invest in and manage property on behalf of others, and also invested heavily in his own right.
He backed away from Quinlan Private in the summer of 2009, leaving his former partners to carry on under a new name Avestus. Soon afterwards, he moved his family to Switzerland for "tax and personal reasons".
Several of Mr Quinlan's assets have been sold in recent years, including a 250-space car park in London, which fetched £150m (€181m) last autumn; and an Ailesbury Road property, which made €2.5m. A Manhattan home was also sold in August.