Quinn administrators get extra €60m
THE administrators of Quinn Insurance have been given the go-ahead to draw down another €60m from the State's Insurance Compensation Fund.
The latest ruling by the High Court brings the bill linked to Quinn Insurance to €1.118bn.
The High Court heard that the sale of three hotels owned by Quinn Insurance has been agreed, raising a combined value of €67m. The deals will conclude soon.
Quinn Insurance's Irish business, except healthcare, was sold in a deal involving US giant Liberty Insurance last year.
Bernard Dunleavy, for the administrators, said they had settled insurance claims for the first four months of 2013 for some €14.5m less than the sums reserved to meet those claims.
An additional €40m had been saved following the successful conclusion of a dispute between the administrators and Liberty concerning the methodology for calculating the assets of Quinn Insurance, he said.
Mr Dunleavy yesterday presented the 13th report of the joint administrators, Michael McAteer and Paul McCann of Grant Thornton, who were appointed in March 2010
Mr Justice Nicholas Kearns approved their application for the additional €60m drawdown from the insurance fund, bringing the total approved for drawdown to €1.118m.
The administrators told the court last July that they considered a total €1.65bn drawdown from the fund would be a "worst-case scenario".
The enormous cost is being met in part by a levy on all drivers' insurance.
The court also previously heard the administrators are conducting a detailed forensic investigation into certain matters for legal proceedings initiated against the firm's former auditors, PricewaterhouseCoopers (PwC).
The investigation arose from an alleged failure by PwC to highlight that certain guarantees by Quinn Insurance, the company established by businessman Sean Quinn, were threatening the future of the company.
It is expected the administrators will update the court on the litigation later.