Court reserves judgement on Quinn assets
THE Commercial Court has reserved judgment on an application by the family of bankrupt businessman Sean Quinn to stop assets of Quinn companies being sold or moved to NAMA by the end of this year.
Ms Justice Mary Finlay Geoghegan heard final arguments on behalf of the Quinns and Irish Bank Resolution Corporation (IBRC) yesterday and said she was reserving her decision to a later date.
Kieran Wallace, the special liquidator of IBRC which appointed share receivers to various Quinn companies in April 2011, contends Mrs Patricia Quinn and her five children have made out no legal basis for their application.
His counsel Paul Gallagher SC argued the court was entitled to take into account that members of the family had not contradicted the bank's claims they had engaged in asset stripping measures.
Martin Hayden SC, for the Quinns, said the court should not take into account such claims by the bank in circumstances where it had not brought contempt proceedings against most of his clients. They had not addressed the asset stripping claims because that was not the issue for the court to decide, he argued.
The Quinns want orders preventing assets of Quinn companies being sold or moved to NAMA by December 31 next in accordance with a direction of the Minister for Finance.
Unless the orders are made, the family say, given the insolvency of IBRC, there will be no funds available to meet their damages claim should they win their main action alleging they are not liable for some €2.34bn loans made by Anglo to Quinn companies in 2007 and 2008 on grounds those loans were allegedly unlawfully made for the purpose of propping up the bank's share price.
The hearing of the family's main action is on hold pending the outcome of criminal proceedings against some former executives of Anglo.