Monday 26 February 2018

Quinn administrators' bill reaches €2m

Quinn Insurance
Quinn Insurance

Tim Healy

THE joint administrators of Quinn Insurance invoiced some €2.14m for professional fees, including legal fees, for the period between October 2015 and December 2016, the High Court has been told.

President of the High Court, Mr Justice Peter Kelly, received the administrators' latest report on Tuesday, their 19th since being appointed in 2010.

He was told sanction for the fees was not being sought as they accorded with rates previously approved by the court.

The fees include €470,098 raised for the two joint administrators, Michael McAteer and Paul McCann - both of Grant Thornton Ireland (GTI) - and for three GTI staff for the period between October 2015 and December 2016.

GTI itself, which provides tax, company secretarial, forensics and transaction support to the administration, raised some €1.67m fees for the same period.

That includes €888,217 fees for two law firms acting for the administrators, including preparing for the QI action against its former auditors Price Waterhouse Coopers (PWC). The fees for that case are expected to rise over the coming years, the report stated.

The judge was also told, that significant outstanding litigation, initiated by the administrators in 2012 claiming €800m against PWC, is unlikely to be heard before 2019 or 2020.

PWC estimates it will incur more than €30m legal costs defending the case and the administrators are also expected to incur multi-million costs.

PWC, which was auditor of QI for the years ending 2005, 2006, 2007 and 2008, denies claims of breach of contract and breach of duty in its auditing.

PWC has queried QI's ability to pay costs should PWC successfully defend the case and its application seeking security for that €30m sum will come before the court in July.

On Tuesday, Mr Justice Kelly advised the administrators to explore alternative means of resolving the dispute other than "very expensive" litigation.

Addressing other matters in the report, counsel for the administrators said they remain of the view the ultimate cost to the State of the administration is some €1.1bn which did not take account of any potential recovery from PWC arising from the litigation.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business