Drawdown of another €60m by Quinn administrators
THE High Court has approved an application by the joint administrators of Quinn Insurance Ltd (QIL) for the draw down of another €60m from the State's Insurance Compensation Fund.
It brings to €1,118m the total amount of funds so far approved for draw down.
The court also heard the sale of three hotel properties owned by QIL has been agreed to a combined value of €67m and is expected to conclude shortly. QIL's Irish business, except healthcare, was sold in a deal involving US insurance 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 they had 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 QIL, he said.
The hedging of QIL's Sterling exposure up to 2015 would also protect against fluctuations in the price of Sterling in circumstances where all UK claims against QIL are paid in Sterling, the court heard.
Mr Dunleavy yesterday presented the 13th report of the joint administrators Michael McAteer and Paul McCann of Grant Thornton, appointed in March 2010, to the court.
Mr Justice Nicholas Kearns approved their application for the additional €60m draw down from the ICF, bringing the total approved for draw down to €1,118m. The administrators told the court in July
2012 they considered a total €1.65bn drawdown from the fund would be a "worst-case scenario".
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 QIL, the company established by now jailed businessman Sean Quinn, were threatening the future of the company.