Quinns rejected Anglo offer to let them walk away from debts
Family would have to co-operate with bank's takeover of crumbling empire
Published 19/09/2011 | 05:00
debts, because their assets weren't valuable enough to cover their massive borrowings.
The Quinns have since begun a legal action against Anglo, claiming the bank had no right to seize assets since the loans were "tainted by illegality".
The family is arguing that Sean Quinn was given the money to buy shares in Anglo to stop the bank's share price falling, something they say amounts to illegal share support.
The bank is also suing the Quinns, claiming they have attempted to "denude" the bank of its right to the international property empire.
A spokesman for the Quinn family this weekend said their lawyers had advised them against commenting.
Anglo wouldn't "comment on press speculation surrounding the bank's present or previous dealings with Quinn".
Under the proposed settlement, the bank would also have explicitly promised not to "pursue any insolvency step" against the family.
In return, the six had to agree not to sue Anglo for any issues in relation to the original granting of the loans.
The Quinn children and Mrs Quinn were also required to provide "net worth statements" "to be certified by an auditor acceptable to Anglo".
Anglo retained the right to audit the statements for four months and if they were deemed to be out by 5pc of €100,000, the bank would then take insolvency actions.
The children and Mrs Quinn were required to "surrender all shares or any interest in any shares" they held in the Quinn Group and the international property empire, and to resign any positions they held. At the time, four of the children were working in Quinn companies.
Sean Quinn was offered a similar deal, though the terms did not specifically release him from guarantees and did not include a promise not to pursue insolvency actions against him.
Mr Quinn was also asked to explicitly acknowledge the "validity of the loans" and of Anglo's move to appoint a share receiver. All family members would have had to agree not to set up in competing businesses for at least two years.
Sean Quinn and his wife would be asked to agree to a €3m mortgage on their home.
If the property was sold within 10 years, "all proceeds of the sale are to be paid to Anglo, save €500,000".
If it hadn't been sold at the end of the term, it was to be placed on the market.