Quinn family begin action for damages against Anglo
Published 19/05/2011 | 05:00
THE family of former tycoon Sean Quinn have begun a legal action seeking hundreds of millions of euro in damages against Anglo Irish Bank.
A High Court case taken by the family is expected to hear details of how they set up six companies in Cyprus.
Mr Quinn's wife and five children are suing Anglo Irish Bank over alleged negligence, breach of duty and intentional and/or negligent infliction of economic damage.
They also want declarations that guarantees provided by them to Anglo over the liabilities of several Cyprus-registered companies are invalid and unenforceable.
Those companies are Lud Investments Ltd, Moshaid Investments Ltd, Opawa Investments Ltd, Pahu Ltd, Tarate Enterprises Ltd and Morboneto Holdings Ltd, all with registered offices at Capital Centre, Nicosia, Cyprus.
The damages claim arises from events of the past two years that led to the family losing control of the Quinn Group of businesses and is believed to amount to a claim for hundreds of millions of euro.
In proceedings against Anglo and receiver Kieran Wallace, the family are seeking to overturn the appointment of Mr Wallace by Anglo as receiver over shares held by them in the Quinn Group and various related companies.
They claim that charges made in favour of Anglo from late 2003 up to 2009 over shares held in Quinn Group (RoI) Ltd, Quinn Quarries Ltd, Slieve Russell Hotel Ltd, Quinn Finance Holding, Quinn Group Hotels Ltd and Quinn Group Properties Ltd are invalid, unenforceable and of no legal effect.
The appointment of Mr Wallace on April 14 as receiver over those shareholdings on foot of the disputed charges is also invalid and unenforceable, the family claim.
They want orders restraining him acting as receiver and setting aside his appointment.
The proceedings by Patricia Quinn and her children -- Sean Jnr, Brenda, Aoife, Colette and Ciara -- were lodged in the High Court this week and it is expected an application will be made within weeks to have the case fast-tracked by the Commercial Court.
The family are being represented by Brian O'Moore, Bill Shipsey and Rossa Fanning.
The children are equal shareholders in Quinn Group (RoI), the parent company for the various manufacturing, financial services and leisure businesses that were owned by the family.
All of the children except Ciara work in businesses within the group.
Anglo appointed a receiver over the company's shares in Quinn Group (RoI) last month, taking control of the business with banks and bondholders, who are owed €1.28bn by the group.
The Quinn family owe Anglo €2.88bn.