Thursday 18 January 2018

Former Quinn parent firm must release 'crucial' files

Sean Quinn: stake in bank
Sean Quinn: stake in bank

Tim Healy

THE former Anglo Irish Bank is to be provided with "crucial" documents relating to the stake built up in the bank by jailed businessman Sean Quinn.

The special liquidators of IBRC (formerly Anglo) sought the documents from Gortmullan Holdings Ltd for its defence of the Commercial Court action brought by Mr Quinn's wife Patricia and their five children, alleging they are not liable for some €2.34bn loans made by Anglo after September 2007 to various Quinn companies.

The Quinns allege those loans were unlawfully made in breach of the Companies Act and Market Abuse Regulations to shore up Anglo's plummeting share price.

State-owned IBRC has denied that any lending before March 14, 2008, was for the purpose of meeting margin calls on the financial derivatives, known as contract for difference (CFDs) positions.

IBRC has also counter-claimed for recovery of sums allegedly guaranteed by the family under various share pledges.

In seeking documents from Gortmullan, IBRC said it has documents "of crucial relevance" to the issues in dispute between the sides.

It sought documents relating to CFD transactions between 2005 and 2009 including any documents related to acquisition, maintenance and closing out of the CFD positions.

It also wants documents relating to the provision of security by the Quinn family and/or Sean Quinn concerning the CFD transactions.

CRIMINAL

The bank has also joined Sean Quinn and two former executives of the Quinn group, Dara O'Reilly and Liam McCaffrey, for the purposes of securing an indemnity against them should the family win their case.

The bank claims the three were central to an alleged strategy to build up a stake in Anglo via CFDs.

Following the re-structuring of the Quinn Group in late 2011, Gortmullan had in 2012 replaced Quinn Group Ltd as the parent company.

In their action, which has been parked pending the outcome of criminal proceedings against some former Anglo executives, the Quinns allege their father began investing in CFDs on their behalf via a Madeira-registered company, Bazzely, owned by the Quinn children.

They claim the CFD transactions continued until January 2009, that they were unaware of the investments and took no part in them.

Solicitors for Gortmullan had indicated it would provide the documents if a court order was made to that effect.

Mr Justice Kelly made the order sought.

Irish Independent

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