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State waits on €1.1bn pay-out as IBRC locked in Quinn talks


Sean Quinn

Sean Quinn

Sean Quinn

Any deal between the Quinn family and IBRC seems to be still some time away.

Representatives for the Quinns and Irish Bank Resolution Corporation (IBRC) have been in talks for some time to settle their €4.5bn case against the former Anglo Irish Bank and the State.

A deal would end a bitter legal battle that has been one of the most contentious cases to come out of the financial crash.

The family are suing IBRC over loans worth some €2.4bn over alleged illegalities.

However, last week the Supreme Court ruled the Quinns could not rely on alleged illegality by IBRC as part of their case.

Once the Quinn-IBRC case is resolved, it will free up around €1.1bn to be repaid to the state from the IBRC liquidation.

Some €1.6bn is owed to IBRC's unsecured creditors. The bulk of it, €1.1bn, is owed to the State for money paid out to IBRC customers whose savings were guaranteed by the State at the time of the liquidation.

Unsecured creditors also include dozens of business whose bills to the bank were outstanding when the plug was pulled on the bank as well as credit unions.

That money being repaid does not depend on the outcome of the Quinn case, but has been held up until the Quinn case is resolved either way.

The notion that this money could be repaid in full before the Budget next October is said to be optimistic at best.

Junior bondholders are next in line to be repaid, if there is money available.

While talks are continuing, it is understood that no framework for agreement has been made as of yet. If talks fail, the court case is scheduled for June.

When contacted IBRC declined to comment, as did the Department of Finance and the Quinn family.

Irish Independent